You have the following unadjusted trial balance for Rogers Corporation at December 31, 2019:

Rogers Corporation

Unadjusted Trial Balance

43830

At year end, you have the following data for adjustments:
a. An analysis indicates that prepaid rent on December 31 should be $2,300.
b. A physical inventory shows that $650 of office supplies is on hand.
c. Depreciation for 2019 is $35,250.
d. An analysis indicates that unearned service revenue should be $3,120.
e. Wages in the amount of $3,450 are owed but unpaid and unrecorded at year end.
f. Six months' interest at 8% 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 of $55,539 are owed but unrecorded and unpaid.
Required:
1. Prepare the adjusting entries.
2. Prepare an income statement, a retained earnings statement, and a balance sheet using adjusted account balances.
3. Why would you not want to prepare financial statements until after the adjusting entries are made?

Transcribed Image Text:

Debit Credit Account Cash 3,100 Accounts Receivable 15,900 4,200 9,500 625,000 Supplies Prepaid Rent Equipment Accumulated Depreciation $ 104,000 Other Assets 60,900 Accounts Payable Unearned Service Revenue 9,400 11,200 50,000 Note Payable (due 2022) Common Stock 279,500 Retained Earnings, 12/31/2018 Service Revenue 37,000 598,000 Wages Expense Rent Expense Interest Expense Totals 137,000 229,000 4,500 $1,089,100 $1,089,100