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. On December 1, 2020, Rochester Enterprise had signed and recorded a 5.4% bank loan (refer to the tab Worksheet (5) for the amount) due in 3 years. This is the only outstanding note payable. a. b. Prepaid insurance (see the Worksheet) represents a 6-month insurance policy purchased on December 1, 2020. On November 1, 2020, Rochester Enterprise had paid and recorded $30,000 for a 6-month lease for office space. c. 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 December 1, 2020. A physical count revealed that supplies on hand at the end of the month total $2,500. е. f. Equipment is depreciated on a straight-line basis; residual value is estimated to be $25,000 with an estimated service life of 5 years. The assets were held the entire year. g. On December 1, Rochester Enterprise accepted from Greene Supplies a 7-month note receivable at a 4.7% annual interest rate. 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). h. i. Accrued wages totaling $70,000 were unpaid and unrecorded at December 31, 2020. j. Utility costs incurred but unrecorded for the month of December were estimated to be $7,000.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The question is asked on top of the first image. I have attached the aging analysis below. Thanks in advance :)

 

Age of Accounts Balance            December 31, 2020 Estimated % Uncollectible Estimated Amount Uncollectible  
Current                       187,616 2%    
1–30 days past due                       125,705 5%    
31–90 days past due                          35,345 10%                              
Over 90 days past due                          30,290 25%    
Total Accounts Receivable  $                   378,956      
         
A
E
H
K
Balance Columns, all cells must be formulas, not typed
in numbers.
2
End of Period Worksheet
For the Year Ended December 31, 2020
Unadjusted
Adjusted
5 Account Title
Trial Balance
Adjustments
Trial Balance
Income Statement
Balance Sheet
6.
DR
CR
DR
CR
DR
CR
DR
CR
DR
CR
7 Cash
8 Accounts Receivable
9 Allowance for Doubtful Accounts
136,789
378,956
16,782
10 Interest Receivable
11 Note Receivable
12 Merchandise Inventory
13 Prepaid Insurance
14 Prepaid Rent
15 Supplies
16 Equipment
17 Accumulated Depreciation - Equipment
18 Accounts Payable
19 Salaries & Wages Payable
150,000
361,866
60,000
30,000
46,777
400,000
75,000
51,709
20 Unearned Revenue
24,000
21 Interest Payable
22 Utilities Payable
23 Note Payable (final payment due 2023)
24 Common Stock
350,000
270,600
25 Retained Earnings
424,500
26 Dividends
120,000
4,050,864
35,933
27 Sales
28 Consulting Revenue
29 Sales Returns and Allowances
300,000
100,000
1,950,000
1,200,000
30 Sales Discounts
31 Cost of Goods Sold
32 Salaries & Wages Expense
33 Depreciation Expense - Equipment
34 Bad Debt Expense
35 Insurance Expense
36 Rent Expense
37 Supplies Expense
38 Utilities Expense
65,000
39 Interest Revenue
40 Interest Expense
41
5,299,388
5,299,388
42 Net Income
43
44
Transcribed Image Text:A E H K Balance Columns, all cells must be formulas, not typed in numbers. 2 End of Period Worksheet For the Year Ended December 31, 2020 Unadjusted Adjusted 5 Account Title Trial Balance Adjustments Trial Balance Income Statement Balance Sheet 6. DR CR DR CR DR CR DR CR DR CR 7 Cash 8 Accounts Receivable 9 Allowance for Doubtful Accounts 136,789 378,956 16,782 10 Interest Receivable 11 Note Receivable 12 Merchandise Inventory 13 Prepaid Insurance 14 Prepaid Rent 15 Supplies 16 Equipment 17 Accumulated Depreciation - Equipment 18 Accounts Payable 19 Salaries & Wages Payable 150,000 361,866 60,000 30,000 46,777 400,000 75,000 51,709 20 Unearned Revenue 24,000 21 Interest Payable 22 Utilities Payable 23 Note Payable (final payment due 2023) 24 Common Stock 350,000 270,600 25 Retained Earnings 424,500 26 Dividends 120,000 4,050,864 35,933 27 Sales 28 Consulting Revenue 29 Sales Returns and Allowances 300,000 100,000 1,950,000 1,200,000 30 Sales Discounts 31 Cost of Goods Sold 32 Salaries & Wages Expense 33 Depreciation Expense - Equipment 34 Bad Debt Expense 35 Insurance Expense 36 Rent Expense 37 Supplies Expense 38 Utilities Expense 65,000 39 Interest Revenue 40 Interest Expense 41 5,299,388 5,299,388 42 Net Income 43 44
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.
On December 1, 2020, Rochester Enterprise had signed and recorded a 5.4% bank loan (refer to the tab Worksheet (5) for the amount) due in 3 years. This is the only outstanding
note payable.
a.
b. Prepaid insurance (see the Worksheet) represents a 6-month insurance policy purchased on December 1, 2020.
c. On November 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
recorded on December 1, 2020.
consulting services that will be performed monthly. The payment from the customer was received and
е.
A physical count revealed that supplies on hand at the end of the month total $2,500.
f. Equipment is depreciated on a straight-line basis; residual value is estimated to be $25,000 with an estimated service life of 5 years. The assets were held the entire year.
g. On December 1, Rochester Enterprise accepted from Greene Supplies a 7-month note receivable at a 4.7% 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 $70,000 were unpaid and unrecorded at December 31, 2020.
Utility costs incurred but unrecorded for the month of December were estimated to be $7,000.
Transcribed Image Text: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. On December 1, 2020, Rochester Enterprise had signed and recorded a 5.4% bank loan (refer to the tab Worksheet (5) for the amount) due in 3 years. This is the only outstanding note payable. a. b. Prepaid insurance (see the Worksheet) represents a 6-month insurance policy purchased on December 1, 2020. c. On November 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 recorded on December 1, 2020. consulting services that will be performed monthly. The payment from the customer was received and е. A physical count revealed that supplies on hand at the end of the month total $2,500. f. Equipment is depreciated on a straight-line basis; residual value is estimated to be $25,000 with an estimated service life of 5 years. The assets were held the entire year. g. On December 1, Rochester Enterprise accepted from Greene Supplies a 7-month note receivable at a 4.7% 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 $70,000 were unpaid and unrecorded at December 31, 2020. Utility costs incurred but unrecorded for the month of December were estimated to be $7,000.
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