4-E The Mooja Co. was organized on July 1, 2019. Quaterly financial Statements are prepared. The trial balance and adjusted trial balance on September 30 are shown below. Account Titles Cash Accounts Receivable Prepaid Rent Supplies Equipment Accum. Dep'n -Equipment Adjusted Trial Balance 67, 000 Trial Balance 67, 000 8, 000 9, 000 4, 000 15, 000 12, 000 10, 000 150, 000 150, 000 3, 500 Notes Payable 50, 000 50, 000 Accounts Payable Salaries Payable Interest Payable Unearned Rent Revenue Mooja, Capital Mooja, Drawing 15, 100 15, 100 6, 000 500 9, 000 6, 000 140, 000 140, 00 6, 000 6, 000 Commission Revenue 140, 000 144, 000 Rent Revenue 4, 000 7, 000 Salaries Expense Rent Expense Depreciation Expense Supplies Expense Utilities Expense Interest Expense Balance 90, 000 9, 000 96,000 15, 000 3, 500 2, 000 5, 000 5, 100 500 358, 100 358, 100 372, 100 P 372, 100 Instructions: a) Journalize the adjusting entries that were made. b) Prepare an income statement and owner's equity statement for the 3 months ending September 30 and a balance sheet/ statement of financial condition at September 30. c) If the notes bears interest at 12%, how many months has been outstanding?
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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