A/C Name Gregg's Shipping Supplies Ltd- Trinidad Branch Trial Balance as at June 30, 2022 Trial Balance Cash Accounts receivable Allowance for bad debt Merchandise Inventory Store Supplies Prepaid Insurance Prepaid rent Furniture and fixtures Accumulated depreciation-Furniture and Fixtures Motor Truck Accumulated depreciation - Motor Truck Accounts payable Salary payable Interest payable Unearned Sales revenue Long-term loan Gregg's, Capital Gregg's, Withdrawa Sales revenue Sales discount Sales returns and allowances Cost of goods sold Salaries expense Insurance Expense Utilities Expense Rent Expense Depreciation Expense - Furniture & Fixtures Depreciation Expense - Motor Truck Store Supplies Expense Gain on Disposal of Old Motor Truck Bad-Debt Expense Interest Expense DR 1,000,000 1,000,000 1,200,000 205,000 184,950 287,035 600,000 1,200,000 ,000 160,500 145,400 1,055,000 808,000 184,950 325,000 328,040 ACCT1002 - Introduction to Financial Accounting Assignment #2 CR 80,000 59,000 50,000 (i) Store Supplies on hand at June 30, 2022 amounted to $95,400. (ii) 28,000 198,500 2,185,375 2,900,000 3,250,000 8,808,875 8,808,875 58,000 The following additional information is available at June 30, 2022: Page Insurance of $184,950 was paid on April 1, 2022, for 9-months to December 2022
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.
![(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
(xi)
Rent was prepaid on March 1, 2022, for 7-months to September 2022.
The furniture and fixtures have an estimated useful life of 10 years and is being
depreciated on the straight-line method down to a residual value of $10,000.
Other data:
a)
The motor truck was acquired on February 1, 2022, and is being depreciated
over 5 years on the double-declining balance method of depreciation, down to
a residue of $15,000
Salaries earned by employees not yet paid amounted to $195,000 at June 30, 2022.
Accrued interest expense as of June 30, 2022, $50,550.
On June 30, 2022, $66,000 of the previously unearned sales revenue had been earned.
The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the
Allowance for Bad Debts should be $100,000.
After making all other adjustments, a physical count of inventory was done, which
reveals that there was $1,115,500 worth of inventory on hand at June 30,2022
d)
The business is expected to make principal payments totalling $345,000 towards the
loan during the fiscal year to June 30,2023
Required:
ACCT1002 - Introduction to Financial Accounting Assignment # 2
Prepare the necessary adjusting journal entries on June 30, 2022.
[Narrations are not required]
b) Prepare the Adjusted Trial balance at June 30, 2022.
c) Prepare the company's multiple-step income statement for the period ending
June 30, 2022
Prepare the company's statement of owner's equity at June 30, 2022
Page | 13
e) Prepare the company's classified balance sheet at June 30, 2022](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5697483b-32d5-4003-9cf6-45b8afa97eee%2Faef67d8f-b0cc-4c85-9981-51c6046897a3%2Fuzui8g_processed.png&w=3840&q=75)
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Why is there no adjustment for the transaction in other data: The one for the loan
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