Rogers Company completed the following transactions during 2014. The annual acco

Question

Rogers Company completed the following transactions during 2014. The annual accounting period ends December 31, 2014. Jan. 8 Purchased merchandise for resale on account at an invoice cost of $14,860; assume a periodic inventory system. 17 Paid January 8 invoice. Apr. 1 Borrowed $35,000 from National Bank for general use; executed a 12-month, 8 percent interest-bearing note payable. June 3 Purchased merchandise for resale on account at an invoice cost of $17,420. July 5 Paid June 3 invoice. Aug. 1 Rented a small office in a building owned by the company and collected six months’ rent in advance amounting to $6,000. (Record the collection in a way that will not require an adjusting entry at year-end.) Dec. 20 Received a $100 deposit from a customer as a guarantee to return a large trailer “borrowed” for 30 days. 31 Determined wages of $9,500 earned but not yet paid on December 31 (disregard payroll taxes).

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. Do not round your intermediate calculations.)

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. Do not round your intermediate calculations.)

Explanation / Answer

Date Title Debit credit jan8 Purchase 14860 Accounts Payable 14860 [being purchase of Inventory made on credit] 17jan Accounts payable 14860 cash 14860 [being payables paid ] Apr1 cash 35000 note payable 35000 [being amount borrowed and note issued recorded] june3 Purchase 17420 Accounts payable 17420 being purchase of Inventory made on credit] july5 Accounts payable 17420 Cash 17420 [being payables paid ] Aug 1 cash 6000 Unearned Rent 6000 [being Rent received in advance] Dec 20 cash 100 Security deposit 100 [bbeing deposit received] dec31 Wages expense 9500 Wages payable 9500 [Being wages accrued but not paid]

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