P9-2 (Algo) Recording and Reporting Current Liabilities and identifying Cash Flow Effects LO9-1, 9-5 Roger Company completed the following transactions during Year 1. Roger's fiscal year ends on December 31. January 8 January 17 April 1 June 3 July 5 August 1 December 20 December 31 Required: Purchased merchandise for resale on account. The invoice amount was $14,830; assume a perpetual inventory system. Paid January 8 invoice. Borrowed $60,000 from National Bank for general use; signed a 12-month, 11% annual interest-bearing note for the money. Purchased merchandise for resale on account. The invoice amount was $17,320. Paid June 3 invoice. Rented office space in one of Roger's buildings to another company and collected six months' rent in advance amounting to $21,000. Received a $160 deposit from a customer as a guarantee to return a trailer borrowed for 30 days. Determined wages of $10,000 were earned but not yet paid on December 31 (disregard payroll taxes). 1. Prepare journal entries for each of these transactions. 2. Prepare the adjusting entries required on December 31. 3. Show how all of the liabilities arising from these transactions are reported on the balance sheet at December 31. 4. For each transaction, state whether operating cash flows increase, decrease, or are not affected. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare journal entries for each of these transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Adjusting entries will be recorded in Part 2. View transaction list Journal entry worksheet > 1 2 34567 Record the $14,830 purchased merchandise for resale on account assuming a perpetual inventory system. Note: Enter debits before credits. Date January 08 General Journal Debit Credit Clear entry Record entry View general journal < Required 1 Required 2 > Required 1 Required 2 Required 3 Required 4 Prepare journal entries for each of these transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Adjusting entries will be recorded in Part 2. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 Record the $14,830 paid for merchandise purchased. Note: Enter debits before credits. Date January 17 General Journal Debit Credit Clear entry Record entry View general journal < Required 1 Required 2 > Required 1 Required 2 Required 3 Required 4 Prepare journal entries for each of these transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Adjusting entries will be recorded in Part 2. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 Record the $60,000 borrowed for general use; signing a 12-month, 11% annual interest-bearing note for the money. Note: Enter debits before credits. Date April 01 General Journal Debit Credit Record entry Clear entry View general journal < Required 1 Required 2 > Required 1 Required 2 Required 3 Required 4 Prepare journal entries for each of these transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Adjusting entries will be recorded in Part 2. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 Record the $17,320 purchased merchandise for resale on account. Note: Enter debits before credits. Date June 03 General Journal Debit Credit Clear entry Record entry View general journal < Required 1 Required 2 > Required 1 Required 2 Required 3 Required 4 Prepare journal entries for each of these transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Adjusting entries will be recorded in Part 2. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 > Record the $17,320 paid for merchandise purchased. Note: Enter debits before credits. Date July 05 General Journal Debit Credit Record entry Clear entry View general journal < Required 1 Required 2 > Required 1 Required 2 Required 3 Required 4 Prepare journal entries for each of these transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Adjusting entries will be recorded in Part 2. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 Record the $21,000 rent collected for office space for six months. Note: Enter debits before credits. Date August 01 General Journal Debit Credit Clear entry Record entry View general journal < Required 1 Required 2 > > Required 1 Required 2 Required 3 Required 4 Prepare journal entries for each of these transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Adjusting entries will be recorded in Part 2. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 Record the $160 deposit received from a customer as a guarantee to return a trailer borrowed for 30 days. Note: Enter debits before credits. Date General Journal Debit Credit December 20 Clear entry Record entry View general journal < Required 1 Required 2 > > Required 1 Required 2 Required 3 Required 4 Prepare the adjusting entries required on December 31. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field View transaction list Journal entry worksheet 1 2 3 Determined wages of $10,000 were earned but not yet paid on December 31 (disregard payroll taxes). Note: Enter debits before credits. Date December 31 General Journal Debit Credit Clear entry Record entry View general journal < Required 1 Required 3 > > Required 1 Required 2 Required 3 Required 4 Prepare the adjusting entries required on December 31. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 Record the adjusting entry for interest expense on the $60,000, 11% annual interest-bearing note. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal < Required 1 Required 3 > Required 1 Required 2 Required 3 Required 4 Prepare the adjusting entries required on December 31. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 2 3 Record the adjusting entry for rent revenue. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Clear entry Record entry View general journal < Required 1 Required 3 > Required 1 Required 2 Required 3 Required 4 Show how all of the liabilities arising from these transactions are reported on the balance sheet at December 31. ROGER COMPANY Balance Sheet (Partial) As of December 31 Current liabilities Total < Required 2 Required 4 > Required 1 Required 2 Required 3 Required 4 For each transaction, state whether operating cash flows increase, decrease, or are not affected. Note: Select "NE" if there is no effect. Transaction January 8 January 17 April 1 June 3 July 5 August 1 December 20 December 31 Effect < Required 3 Required 4