Rogers Company

Rogers Company completed the following transactions during 2011. The annual accounting period ends December 31, 2011.

  1. Prepare journal entries for each of these transactions. (Do not round intermediate calculations. Omit the “$” sign in your response.)
  2. Prepare the adjusting entry required on December 31, 2011. (Do not round your intermediate calculations. Omit the “$” sign in your response.)
  3. For each transaction, indicate whether cash flow from operating activities is increased or decreased or whether there is no effect. (If the item has no effect on the operating activities of statement of cash flows, indicate “No effect”.)

Jan. 8 Purchased merchandise for resale on account at an invoice cost of $14,680; assume a periodic inventory system.

17 Paid January 8 invoice.

Apr. 1 Borrowed $36,000 from National Bank for general use; executed a 12-month, 11 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 $24,000. (Record the collection in a way that will not require an adjusting entry at

year-end.)

Dec. 20 Received a $110 deposit from a customer as a guarantee to return a large trailer “borrowed” for 30 days.

31 Determined wages of $9,900 earned but not yet paid on December 31 (disregard payroll taxes).

Show how all of the liabilities arising from these transactions are reported on the balance sheet at December 31, 2011. (Do not round your intermediate calculations. Omit the “$” sign in your response.)