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Required information P9-2 (Algo) Recording and Reporting Current Liabilities with Discussion of Cash Flow Effects LO9-1, 9-5 Skip to question [The following information applies to
Required information
P9-2 (Algo) Recording and Reporting Current Liabilities with Discussion of Cash Flow Effects LO9-1, 9-5
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[The following information applies to the questions displayed below.]
Roger Company completed the following transactions during Year 1. Rogers fiscal year ends on December 31.
Jan. | 8 | Purchased merchandise for resale on account. The invoice amount was $14,770; assume a perpetual inventory system. | |
17 | Paid January 8 invoice. | ||
Apr. | 1 | Borrowed $60,000 from National Bank for general use; signed a 12-month, 13% annual interest-bearing note for the money. | |
June | 3 | Purchased merchandise for resale on account. The invoice amount was $17,320. | |
July | 5 | Paid June 3 invoice. | |
Aug. | 1 | Rented office space in one of Rogers buildings to another company and collected six months rent in advance amounting to $21,000. | |
Dec. | 20 | Received a $200 deposit from a customer as a guarantee to return a trailer borrowed for 30 days. | |
31 | Determined wages of $9,400 were earned but not yet paid on December 31 (disregard payroll taxes). |
P9-2 Part 2
2. Prepare the adjusting entries required on December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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