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

Question:

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

Rogers Corporation

Unadjusted Trial Balance

43830

Debit Credit Account Cash 3,100 Accounts Receivable 15,900 4,200 9,500 625,000 Supplies Prepaid Rent Equipment Accumulat

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?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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