Problem $3-64$A Adjusting Entries and Financial Statements

Objective $45$

CPA $1\mathrm{.}2\mathrm{.}2,1\mathrm{.}3\mathrm{.}1$

You have the following unadjusted trial balance for Rangoon

Corporation at December $31,2022$:

Rangoon Corporation

Unadjusted Trial Balance

December $31,2022$

Account Debit Credit Cash $$3,100$ Accounts Receivable $15,900$ Supplies $4,200$ Prepaid Rent $9,500$ Equipment $625,000$ Accumulated Depreciation $($Equipment$)$ $$104,000$ Other Assets $60,900$ Accounts Payable $9,400$ Unearned Service Revenue $11,200$ Note Payable $($due $2025)50,000$ Common Shares $279,500$ Retained Earnings, $12/31/202137,000$ Service Revenue $598,000$ Wages Expense $137,000$ Rent Expense $229,000$ Interest Expense $4,500$ $$1,089,100\_$ quad" Total $"\_$ $$1,089,100\_$

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 $2022$ 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 tax of $$55,539$ is owed but unrecorded and unpaid.

Required:

Prepare the adjusting entries.

Prepare a statement of earnings, a statement of retained earnings, and a statement of

financial position using adjusted account balances.

Using this information: create an adjusted statement of earnings, statement of retained earnings, and financial position