Record (journal), post to ledgers, prepare a trial balance for March.
2) Record adjusting entries for the year ended March 31, 2021, assuming adjusting
entries are made annually.
3) Prepare an adjusted trial balance and prepare a statement of income at March 31.
Rogers Inc reports the following information for 11 months of the year in its February 28, 2021, trial balance. The company's year-end is March 31. ROGERS INC. Trial Balance February 28, 2021 Debit Credit Cash $62,400 Accounts receivable 336.000 Inventory 2,640,000 Supplies 7,200 Prepaid rent 4,800 Equipment 139,200 Accumulated depreciation-equipment $27,840 Accounts payable 1,488,000 Deferred revenue 33.600 Bank loan payable 432,000 Common shares 192,000 Retained earnings 528,480 Dividends declared 48.000 Sales 5,095,104 Cost of goods sold 3,690,144 Advertising expense 72,000 Freight out 172,800 Office expense 24,960 Rent expense 52,800 Salaries expense 345,600 Travel expense 12,000 Utilities expense 19,200 Interest expense 25,920 Income tax expense 144,000 $7,797,024 $7,797,024 Rogers incurred the following transactions for the month of March. The company uses a perpetual inventory system. Mar. 1 Received $120,000 on account from a major customer. 2 Paid a supplier an amount owing of $192,000, taking the full discount, terms 2/10,n/30. Purchased merchandise from a supplier, $288,000, terms 2/10, 1/30, FOB destination 5 6 Recorded cash sales, $273,600. The cost of goods sold for these sales was $192,000. 7 Returned scratched merchandise to the supplier from the March 5 purchase, $24,000. 8 The appropriate company paid freight for the March 5 purchase, $7,200. 9 Sold $192,000 of merchandise on account, terms 2/10, n/30, FOB destination. The cost of goods sold was $134,400. Management estimated that sales returns will be 12% of sales. 9 The appropriate company paid freight for the March 9 sale, $4,800. 12 Ordered custom merchandise for a local designer totalling $48,000. Received $12,000 as a deposit. 13 Accepted returned merchandise from the sale on March 9, $19,200. The cost of the goods returned to inventory was $13,440. 14 Paid for the merchandise purchased on March 5, net of merchandise returns on March 7. 16 Paid salaries of $43,200. 20 Recorded cash sales, $244,800. The cost of goods sold for these sales was $171,840. No returns were anticipated related to these sales. 27 Paid salaries of $48,000. 29 Received payment of merchandise sold on March 9, net of merchandise returns on March 13. 30 Paid rent, $4,800. Adjustment and additional data: 1. Accrued $9,600 for utilities, $9,600 for salaries, and $8,640 for interest on the bank loan. 2. Recorded depreciation on equipment, which has an expected useful life of 10 years 3. Recorded an additional $48,000 of income tax payable. 4. Common shares of $960 were issued during the year. 5. $43,200 of the bank loan is due to be repaid in the next year. Rogers Inc reports the following information for 11 months of the year in its February 28, 2021, trial balance. The company's year-end is March 31. ROGERS INC. Trial Balance February 28, 2021 Debit Credit Cash $62,400 Accounts receivable 336.000 Inventory 2,640,000 Supplies 7,200 Prepaid rent 4,800 Equipment 139,200 Accumulated depreciation-equipment $27,840 Accounts payable 1,488,000 Deferred revenue 33.600 Bank loan payable 432,000 Common shares 192,000 Retained earnings 528,480 Dividends declared 48.000 Sales 5,095,104 Cost of goods sold 3,690,144 Advertising expense 72,000 Freight out 172,800 Office expense 24,960 Rent expense 52,800 Salaries expense 345,600 Travel expense 12,000 Utilities expense 19,200 Interest expense 25,920 Income tax expense 144,000 $7,797,024 $7,797,024 Rogers incurred the following transactions for the month of March. The company uses a perpetual inventory system. Mar. 1 Received $120,000 on account from a major customer. 2 Paid a supplier an amount owing of $192,000, taking the full discount, terms 2/10,n/30. Purchased merchandise from a supplier, $288,000, terms 2/10, 1/30, FOB destination 5 6 Recorded cash sales, $273,600. The cost of goods sold for these sales was $192,000. 7 Returned scratched merchandise to the supplier from the March 5 purchase, $24,000. 8 The appropriate company paid freight for the March 5 purchase, $7,200. 9 Sold $192,000 of merchandise on account, terms 2/10, n/30, FOB destination. The cost of goods sold was $134,400. Management estimated that sales returns will be 12% of sales. 9 The appropriate company paid freight for the March 9 sale, $4,800. 12 Ordered custom merchandise for a local designer totalling $48,000. Received $12,000 as a deposit. 13 Accepted returned merchandise from the sale on March 9, $19,200. The cost of the goods returned to inventory was $13,440. 14 Paid for the merchandise purchased on March 5, net of merchandise returns on March 7. 16 Paid salaries of $43,200. 20 Recorded cash sales, $244,800. The cost of goods sold for these sales was $171,840. No returns were anticipated related to these sales. 27 Paid salaries of $48,000. 29 Received payment of merchandise sold on March 9, net of merchandise returns on March 13. 30 Paid rent, $4,800. Adjustment and additional data: 1. Accrued $9,600 for utilities, $9,600 for salaries, and $8,640 for interest on the bank loan. 2. Recorded depreciation on equipment, which has an expected useful life of 10 years 3. Recorded an additional $48,000 of income tax payable. 4. Common shares of $960 were issued during the year. 5. $43,200 of the bank loan is due to be repaid in the next year
