You have the following unadjusted trial balance for Rogers Corporation at December

31, 2009:

At year-end, you have the following data for adjustments:
a. An analysis indicates that prepaid rent on December 31 should be $7,900.
b. A physical inventory shows that $1,100 of office supplies is on hand.
c. Depreciation for 2009 is $85,000.
d. An analysis indicates that unearned revenue should be $8,400.
e. Wages in the amount of $2,800 are owed but unpaid and unrecorded at year-end.
f. Six months' interest at 9 percent on the note was paid on September 30. Interest for the period from October 1 to December 31 is unpaid and unrecorded.
g. Income taxes at 30 percent are owed but unrecorded and unpaid.

Required:
1. Prepare the adjusting entries.
2. Prepare an income statement, a statement of changes in retained earnings, and a balance sheet using adjusted account balances.
3. Why would you not want to prepare financial statements until after the adjusting entries aremade?

Transcribed Image Text:

Rogers Corporation Unadjusted Trial Balance December 31, 2009 Debit Credit $ 3,100 15,900 4,200 9,500 625,000 Accounts Receivable Office Supplies Inventony Prepaid Rent Equipment Accumulated Depreciation, Equipment Other Assets Accounts Payable Unearned Revenue Note Payable (due 2012) Common Stock Retained Earnings, 12/31/2008 Service Revenue Wages Expense Rent Expense Interest Expense $104,000 60,900 9,400 11,200 50,000 279,500 37,000 598,000 137,000 229,000 4,500 $1,089,100 Total $1,089,100