A partial list of Waterways' accounts and their balances for the month of November follows. Accounts Receivable $272,600 Advertising Expenses 54,600 Cash 261,500 Depreciation-Factory Equipment 16,700 Depreciation-Office Equipment 2,500 Direct Labor 42,300 Factory Supplies Used 16,600 Factory Utilities 10,100 Finished Goods Inventory, November 30 69,500 Finished Goods Inventory, October 31 73,200 Indirect Labor 48,200 Office Supplies Expense 1,600 Other Administrative Expenses 72,700 Prepaid Expenses 41,100 Raw Materials Inventory, November 30 52,800 Raw Materials Inventory, October 31 38,300 Raw Materials Purchases 184,700 Rent-Factory Equipment 47,400 Repairs-Factory Equipment 4,500 Salaries 326,200 Sales Revenue 1,341,400 Sales Commissions 40,900 Work In Process Inventory October 31 Work In Process Inventory, November 30 53,200 42,300
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.
A list of accounts and their values are given above. From this information, prepare a partial
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