Question

Roger Company completed the following transactions during Year 1. Roger’s fiscal year ends on December 31.

Requirements:

1)Prepare journal entries for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2)Prepare the adjusting entries required on December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3) Show how all of the liabilities arising from these transactions are reported on the balance sheet at December 31.

Jan.	8		Purchased merchandise for resale on account. The invoice amount was $14,820; assume a perpetual inventory system.
	17		Paid January 8 invoice.
Apr.	1		Borrowed $54,000 from National Bank for general use; signed a 12-month, 11% annual interest-bearing note for the money.
June	3		Purchased merchandise for resale on account. The invoice amount was $17,420.
July	5		Paid June 3 invoice.
Aug.	1		Rented office space in one of Roger’s buildings to another company and collected six months’ rent in advance amounting to $21,000.
Dec.	20		Received a $280 deposit from a customer as a guarantee to return a trailer borrowed for 30 days.
	31		Determined wages of $8,600 were earned but not yet paid on December 31 (disregard payroll taxes).

Answer 1

Roger Company Journal Book
Date	Particulars	Amount Dr $	Amount Cr $
8-Jan	Purchase A/c Dr	14820
	To Sundry Creditors A/c		14820
	( Being the purchase of merchandise on account)
17-Jan	Sundry Creditors A/c Dr	14820
	To Cash		14820
	( Being the amount paid for merchandise purchased on Jan 8)
1-Apr	Cash A/c Dr	54000
	To 11%National Bank Notes A/c		54000
	( Being loan from National Bank for 1 yearat 11% interest)
3-Jun	Purchase A/c Dr	17420
	To Sundry Creditors A/c		17420
	( Being the purchase of merchandise on account)
5-Jul	Sundry Creditors A/c Dr	17420
	To Cash		17420
	( Being the amount paid for merchandise purchased on Jun 3)
1-Aug	Cash A/c Dr	21000
	To Advance Rent A/c		21000
	( Being 6 months Rent collected in advance from a tenant)
20-Dec	Cash A/c Dr	280
	To Deposit on Trailer A/c		280
	( Being Deposit received from a customer for a 30 day use of trailer)
31-Dec	Salary A/c   Dr	8600
	To Salary PayableA/c		8600
	( Being Salary accrued but not paid)
	Yearend Adjustment Entries
31-Dec	Interest A/c Dr	4455
	To Interest PayableA/c		4455
	( Being 9 months interest accrued on the 11% loan from National Bank)
31-Dec	Advance Rent A/c Dr	17500
	To Rent A/c		17500
	Being 5 of the 6 months rent collected in advance recognized as income)
	Balance Shhet of Roger & Coason December 31
	Liabilities
	11%National Bank Notes	54000
	Advance Rent
	( 21000- 17500)	3500
	Interest Payable	4455
	Salary Payable	8600
	Deposit on Trailer	280