Although entries have been recorded all year, adjusting entries have not been recorded since December 31, 2018 when the financial statements were last prepared. Refer to the Worksheet (1) tab for unadjusted account balance Information as of December 31, 2019. Use the following information to help in preparing adjusting entries for Rochester Enterprise On November 1, 2019, Rochester Enterprise had signed a % bank loan (refer to the worksheet) due in 4 years. This is the only outstanding b. Prepaid insurance represents a 6-month insurance policy purchased on October 1, 2019. c. On September 1, 2019, Rochester Enterprise paid $25,000 for a 5 month lease for office space d. Unearned revenue represents a 12-month contract for consulting services that will be performed monthly The payment from the customer was received on December 1, 2019 A physical count revealed that supplies on hand at the end of the month total 23,230 f. Equipment is depreciated on a straight-line basis, residual value is estimated to be $25,000 with an estimated rice life of 7 years. The assets were held the entire year On December 1, Rochester Enterprise accepted from Greene Supplies a 7 month note receiv collectible accounts. The aging The company uses the percentage of receivables basis for estimating desired balance for 2019 tibile accounts The using schoduk of accounts receivable nts receivable must be completed to determine management's Accrued wages totaling 552,789 were unpaid and unrecorded at December 31, 2019 Utility costs incurred but unrecorded for the month of December were estimated to be $6,941. Account Tide End of Period Worksheet For the Year Faded Desember 31, 2019 Un adjusted Trial Balance Adjustments DR CR DR 233.400 489.956 Adjusted Trial Balance DR CR Balance Sheet DR CRDR CRDR CRDR Income Statement DR CR CR Accounts Receivable Allowance for Doubtful Accounts 16.782 154,689 361.866 13.284 25,000 46,777 411,678 TI Note Receivable Merchandise Inventory Prepaid Insurance Prepaid Rent Supplies Equipment Accumulated Depreciation Equipment Accounts Payable Salaries & Wages Payable Uneamed Revenue Interest Payable Utilities Payable Note Payable (final payment due 2023) Common Stock R ed Famings 34.555 $1,709 III 32.000 IIIIII 350.550 270.600 424.500 120.789 5.29,790 915.01 30,520 61.552 Sale Consulting Revenue Sales Returns and Allowance Sales Discounts Cost of Goods Sold Salaries & Wages Expense Depreciation Expense - Fquipment RD Fxpense Insurance Frense Rent pense Supplies Expense Utilities Expense Interest Revenue Interest Expense III Net Income General Journal Account Titles Debit Credit L M N O P K Income Statement Q R S Statement of Retained Earnings Balance Sheet General Journal - Closing Entries Date Account Titles Debit Credit Prepare the Aging Schedule to determine the adjustment required for the allowance method for bad debt: Balance December 31, 2019 Estimated % Uncollectible Estimated Amount Uncollectible Age of Accounts Current 287,616 2% 287616*2%-5752.32 125705*5%-6285.25 125,705 5% 1-30 days past due 31-90 days past due Over 90 days past due Total Accounts Receivable 65,345 11,290 489,956 12% 30% 65345 12%-7841.4 11290*30%-3387
