3. Prepare a post-closing trial balance at September 30, 2021. Answer is complete but not entirely correct. STARBOOKS CORPORATION Post-closing Trial Balance At September 30, 2021 Account Titles Cash Accounts Receivable Supplies Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Deferred Revenue Notes Payable (short-term) Notes Payable (long-term) Common Stock Retained Earnings Service Revenue Interest Revenue Travel Expense Salaries and Wages Expense Rent Expense Depreciation Expense Supplies Expense Income Tax Expense Totals $ Debit 296 296 496 96 3,196 2,596 2,196 X 396 X 296 196 296 10,356 Credit 896 596 196 496 196 196 1,496 X 6,188 96 **333333 S 10,356
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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![[The following information applies to the questions displayed below.]
Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and
amounts reported in its accounting records. The accounts have normal debit or credit balances. Assume the year ended
on September 30, 2021.
Accounts Payable
Accounts Receivable
Accumulated Depreciation
Cash
Common Stock
Deferred Revenue
Depreciation Expense
Equipment
Income Tax Expense
Interest Revenue
Notes Payable (long-term)
Notes Payable (short-term)
Prepaid Rent
Rent Expense
Retained Earnings
Salaries and Wages Expense
Service Revenue
Supplies
Supplies Expense
Travel Expense
$ 596
296
896
296
196
196
296
3,196
296
96
196
496
96
396
1,496
2,196
6,188
496
196
2,596](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe48b91ac-d128-464b-9c87-7d3008e2bbca%2Fe29f2a16-b59c-4896-a67c-fb35a2bdea7b%2Fev2r0b_processed.jpeg&w=3840&q=75)
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