As of December 31 of the current year, Armani Company's records show the following. Cash Accounts receivable Supplies Equipment Accounts payable Common stock Retained earnings, December 31, prior year Retained earnings, December 31, current year Dividends Consulting revenue. Rental revenue. Salaries expense Rent expense Selling and administrative expenses Problem 1-5A (Algo) Preparing a balance sheet LO P2 Required: Prepare the current year-end balance sheet for Armani Company. below. ARMANI COMPANY $ 10,500 9,500 6,500 5,500 12,000 14,500 3,500 5,500 13,500 34,000 23,000 20,500 12,500 8,500
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.
![Use the following information for the Problems below. (Algo)
[The following information applies to the questions displayed below.]
As of December 31 of the current year, Armani Company's records show the following.
Cash
Accounts receivable
Supplies
Equipment
Accounts payable
Common stock
Retained earnings, December 31, prior year
Retained earnings, December 31,
current year
Dividends
Consulting revenue
Rental revenue
Salaries expense
TEATRIT
SOUT TATA T
Rent expense
Selling and administrative expenses
Assets
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TFALLSTALAS TENT
THE ITALY
NUTART!
Required:
Prepare the current year-end balance sheet for Armani Company.
Problem 1-5A (Algo) Preparing a balance sheet LO P2
ARMANI COMPANY
Balance Sheet
December 31
THIS WAS
罪
< Prev
URERST
JE FAGLIG
$ 10,500
9,500
6,500
5,500
12,000
14,500
3,500
5,500
13,500
34,000
S+
23,000
20,500
12,500
8,500
Liabilities
of 4
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