C D E 2 Although entries have been recorded all year, adjusting entries have not been recorded since December 31, 2018 when the financial statements were last prepared. 3 Refer to the Worksheet (1) tab for unadjusted account balance information as of December 31, 2019. 4 Use the following information to help in preparing adjusting entries for Rochester Enterprise. 6 7 8 9 11 12 w 4i bosi a. On February 1, 2019, Rochester Enterprise had signed a 5% bank loan (refer to the worksheet) due in 4 years. This is the only outstanding note payable. b. Prepaid insurance represents a 6-month insurance policy purchased on November 1, 2019. c. On October 1, 2019, Rochester Enterprise paid $22,140 for a 5-month lease for office space. d Unearned revenue represents a 12-month contract for consulting services. The payment was received on September 1, 2019. e. Supplies on hand total $14,230. f. Equipment is depreciated on a straight-line basis; residual value is estimated to be $25,000 with an estimated service life of 12 years. The assets were held the entire year g. On December 1, Rochester Enterprise issued Greene Supplies an 8-month note receivable at a 6.5% annual interest rate. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The aging schedule of accounts receivable must be completed to determine management's desired balance for 2019. i. Accrued wages totaling $66,789 were unpaid and unrecorded at December 31, 2019. j. Utility costs incurred but unrecorded for the month of December were estimated to be $4,941. 14 15 B pajamom Adjusted Trial Balance DR CR Tre atment Income Statement DR | CR persone internet Balance Sheet DR CR Balance Sheet | End of Period Worksheet For the Year Ended December 31, 2019 Unadjusted 5 Account Title Trial Balance Adjustments DR | CRD R CR 7 Cash 125.214 8 Accounts Receivable 494,952 9 Allowance for Doubtful Accounts 20.861 10 Interest Receivable 11 Note Receivable 183.290 12 Merchandise Inventory 361.866 13 Prepaid Insurance 13.284 14 Prepaid Rent 22.140 15 Supplies 56,088 16 Equipment 517,092 17 Accumulated Depreciation - Equipment 54,612 18 Accounts Payable 51,709 19 Salaries & Wages Payable 20 Uneamed Revenue 32,000 21 Interest Payable 22 Utilities Payable 23 Note Payable (final payment due 2023) 350,550 24 Common Stock 270,600 25 Retained Earnings 418,200 26 Dividends 120.540 27 Sales 5,169,690 28 Consulting Revenue 29 Sales Returns and Allowances 29,520 30 Sales Discounts 63,468 31 Cost of Goods Sold 3,520,014 32 Salaries & Wages Expense 801,468 33 Depreciation Expense - Equipment 34 Bad Debt Expense 35 Insurance Expense 36 Rent Expense 37 Supplies Expense 38 Utilities Expense 59,286 39 Interest Revenue 40 Interest Expense 6,368,222 6,368,222 42 Net Income
