You have been given the unadjusted trial balance for Rochester Enterprise as of 12/31/20. Rochester Enterprise prepares financial statements annually. Required Tasks: 1. Using the information in the Worksheet tab, Aging Analysis tab, and Adjustments tab, prepare the adjusting journal entries for the period. Record the entries in the Adjusting Journal Entries tab. (Use letters a-j instead of a date for the date column and round all numbers to the nearest dollar.) SHOW YOUR WORK FOR THE ADJUSTMENT IN THE CELL OR YOU WILL NOT RECEIVE CREDIT FOR THE ENTRY. Type the formula in the appropriate cell, do not type out a separate formula next to a typed in constant number. 2. After the above adjusting entries are entered on the Adjusting Journal Entries tab, the amounts should be linked to the Adjustments column of the Worksheet. Your adjustment amounts should be a formula so if you change the debit/credit amount on the Adjusting Journal Entries, the column amount will automatically change in the Adjustments column of the Worksheet. 3. Complete the Adjusting Trial Balance columns of the Worksheet by using formulas. Think about the best way to do this. All the columns in the Worksheet except for the Unadjusted Trial Balance columns should contain formulas only, and should never contain constant numbers. 4. Prepare a multiple-step income statement on the Income Statement tab. Your Income Statement should be in good form (proper titles, etc.,) and be well-formatted with appropriate use of columns and subtotals. The accounts of the financial statements should follow the order of accounts on the trial balance. You should use formulas in all cells, not constant numbers. (That means, your income statement should be linked to your worksheet.) 5. Prepare a statement of Retained Earnings on the proper worksheet. Your Statement should be formatted appropriately. You should use formulas in all cells, not constant numbers. 6. Prepare a Classified Balance Sheet on the proper worksheet as of 12/31/20. Your Statement should be formatted with appropriate headers necessary for a classified balance sheet. You should use formulas in all cells, not constant numbers. 7. On the Closing Entries worksheet tab, prepare in proper journal entry form the appropriate closing entries at the end of 12/31/20. Link entries to the Worksheet and/or financial statement tabs. Again, you should use formulas in all cells, not constant numbers. Although entries have been recorded all year, adjusting entries have not been recorded since December 31, 2019 when the financial statements were last prepared. Refer to the Worksheet (5) tab for unadjusted account balance information as of December 31, 2020. Use the following information to prepare the adjusting entries for Rochester Enterprise on the tab Adjusting Journal Entries (3). Journalize your entries in the order presented on this worksheet. Use the letters a - j in the date column. You will also complete the remaining tabs (4) - (9) in the workbook. a. On February 1, 2020. Rochester Enterprise had signed and recorded a 3.4% bank loan (refer to the tab Worksheet (5) for the amount) due in 3 years. This is the only outstanding note payable. b. Prepaid insurance (see the Worksheet) represents a 6-month insurance policy purchased on September 1, 2020. c. On October 1, 2020, Rochester Enterprise had paid and recorded $30,000 for a 6-month lease for office space. d Unearned revenue (see the Worksheet) represents a 12-month contract for consulting services that will be performed monthly. The payment from the customer was received and recorded on November 1, 2020. e. A physical count revealed that supplies on hand at the end of the month total $12,500. f. Equipment is depreciated on a straight-line basis; residual value is estimated to be $20,000 with an estimated service life of 7 years. The assets were held the entire year. On December 1, Rochester Enterprise accepted from Greene Supplies a 7-month note receivable at a 3.7% annual interest rate. h. 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 2020. See tab Aging Analysis (4). i Accrued wages totaling $24,000 were unpaid and unrecorded at December 31, 2020. Utility costs incurred but unrecorded for the month of December were estimated to be $6,000. Prepare the Aging Schedule to determine the adjustment required for the allowance method for bad debt: Estimated Estimated % Amount Age of Accounts Balance December 31, 2020 Uncollectible Uncollectible Current 187,616 1% 1-30 days past due 125,705 3% 31-90 days past due 35,345 12% Over 90 days past due 30,290 30% Total Accounts Receivable $ $ 378,956 End of Period Worksheet Adjusted Trial Balance Trial Balance Income Statement Balance Sheet CR For the Year Ended December 31, 2020 Unadjusted Account Title Adjustments DR Cash 216,789 Accounts Receivable 378,956 Allowance for Doubtful Accounts 16,782 Interest Receivable Note Receivable 150,000 Merchandise Inventory 361,866 Prepaid Insurance 12,000 Prepaid Rent 30,000 Supplies 43,777 Equipment 400,000 Accumulated Depreciation - Equipment 75,000 Accounts Payable 51,709 Salaries & Wages Payable Uneamed Revenue 24,000 Interest Payable Utilities Payable Note Payable (final payment due 2023) 320,000 Common Stock 270.600 Retained Earnings 424,500 Dividends 40,000 Sales 4,002,864 Consulting Revenue 32,933 Sales Returns and Allowances 300,000 Sales Discounts 100,000 Cost of Goods Sold 1,920,000 Salaries & Wages Expense 1,200,000 Depreciation Expense - Equipment Bad Debt Expense Insurance Expense Rent Expense Supplies Expense Utilities Expense 65,000 Interest Revenue Interest Expense 5,218,388 5,218,388 Net Income 5,218,388 5,218,388