4:03 1 l LTE ( Mail AA A bartleby.com = bartleby Q&A Business / Accounting / Q&A Library / Kelly ConsultingScore:... Kelly ConsultingScore: 21/64UNADJUSTE... Try Finals prep & more: Get help bartleby -> from live tutors tutor for the month ended May, 31 as follows: K Consulting Unadjusted Trial Balance May 31, 2019 Account Particulars Debit S Credit $ No. Cash 11 44,195 Accounts receivable 12 8,080 Supplies Prepaid rent Prepaid insurance Office Equipment Accumulated depreciation- Office equipment Accounts payable Salaries payable 14 2,085 15 3,200 16 1,500 18 14,500 19 330 21 895 22 Unearned fees 23 7,000 K's Capital K's Drawing 31 42,300 32 10,500 Fees earned 41 36,210 Salary expense Rent expense 51 1,380 52 Supplies expense Depreciation expense Insurance expense Miscellaneous expense 53 54 55 59 1,295 Total 86,735 86,735 4:03 1 l LTE ( Mail AA A bartleby.com = bartleby Q&A Business / Accounting / Q&A Library / Kelly ConsultingScore:... Kelly ConsultingScore: 21/64UNADJUSTE... Try bartleby Finals prep & more: Get help from live tutors tutor K Consulting Adjusted Trial Balance May 31, 2019 Account Particulars Debit S Credit $ No. Cash 11 44,195 Accounts receivable 12 8,080 Supplies Prepaid insurance Prepaid rent Office Equipment Accumulated Depreciation- Office equipment Accounts payable Salaries payable 14 715 16 1,600 15 1,225 18 14,500 19 660 21 895 22 325 Unearned fees 23 3,210 J's Capital J's Drawing 31 42,300 32 10,500 Fees earned 41 40,000 Salary expense Rent expense Supplies Expense Depreciation expense Insurance expense Miscellaneous expense 51 1,705 52 1,600 53 1,370 54 330 55 275 59 1,295 Total 87,390 87,390
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.
Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2019. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following transactions:
| May | 3 | Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,500. |
| 5 | Received cash from clients on account, $2,450. | |
| 9 | Paid cash for a newspaper advertisement, $225. | |
| 13 | Paid Office Station Co. for part of the debt incurred on April 5, $640. | |
| 15 | Provided services on account for the period May 1–15, $9,180. | |
| 16 | Paid part-time receptionist for two weeks’ salary including the amount owed on April 30, $750. | |
| 17 | Received cash from cash clients for fees earned during the period May 1–16, $8,360. |
| May | 20 | Purchased supplies on account, $735. |
| 21 | Provided services on account for the period May 16–20, $4,820. | |
| 25 | Received cash from cash clients for fees earned for the period May 17–23, $7,900. | |
| 27 | Received cash from clients on account, $9,520. | |
| 28 | Paid part-time receptionist for two weeks’ salary, $750. | |
| 30 | Paid telephone bill for May, $260. | |
| 31 | Paid electricity bill for May, $810. | |
| 31 | Received cash from cash clients for fees earned for the period May 26–31, $3,300. | |
| 31 | Provided services on account for the remainder of May, $2,650. | |
| 31 | Kelly withdrew $10,500 for personal use. |
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