An alphabetical list of Ivanhoe Company adjusted accounts at its fiscal year end, August 31, 2024, follows. All accounts have normal balances. Accounts payable $15,600 Notes payable $42,000 Accumulated depreciation-equipment 14,000 Prepaid insurance 575 Accumulated depreciation-furniture 17,500 R. Martin, capital 65,750 Cash 17,830 R. Martin, drawings 71,000 Cost of goods sold 286,875 Rent expense 24,800 Depreciation expense 7,020 Salaries expense 51,000 Equipment 35,000 Salaries payable 2,250 Furniture 42,000 Sales 473,000 Insurance expense 3,575 Sales returns and allowances 14,000 Interest expense 1,375 Supplies 950 Interest payable 575 Supplies expense 6.325 Merchandise inventory 70,950 Unearned revenue 2,600 1.Prepare a multiple-step income statement. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
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.
An alphabetical list of Ivanhoe Company adjusted accounts at its fiscal year end, August 31, 2024, follows. All accounts have normal balances.
Accounts payable
$15,600
Notes payable
$42,000
Accumulated
14,000
Prepaid insurance
575
Accumulated depreciation-furniture
17,500
R. Martin, capital
65,750
Cash
17,830
R. Martin, drawings
71,000
Cost of goods sold
286,875
Rent expense
24,800
Depreciation expense
7,020
Salaries expense
51,000
Equipment
35,000
Salaries payable
2,250
Furniture
42,000
Sales
473,000
Insurance expense
3,575
Sales returns and allowances
14,000
Interest expense
1,375
Supplies
950
Interest payable
575
Supplies expense
6.325
Merchandise inventory
70,950
Unearned revenue
2,600
1.Prepare a multiple-step income statement. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
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