B52 Shate Training prepares adjustments annually and showed the following on its June 30, 2020, year-end: 852 Skate Training Unadjusted Tral Balance.xlsx Fge L Fomes Deta Revie ven D B52 Skate Training Unadjusted Trial Balance June 30, 2020 Unadjusted Adjusted 5 Trial Balance Adjustments Trial Balance 6 Account Dr. Cr. Dr. Cr. Dr. Cr. 7 Cash 8 Accounts recervabie 9 Repair supplies 10 Prepaid arena rental 11 Skate equipment 12 Accumulated depreciation, $ 112.000 28,000 2,800 182.000 428.000 $ 164,000 skate equipment 13 Accounts payable 14 Uneamed training revenue |15 Notes payabie 16 Ben Gibson, capital 17 Ben Gibson, withdrawals 18 Training revenue 19 Salaries expense |20 Arena rental expense 21 Other expenses 22 Totals 5,400 19,600 160,000 451.400 72,000 550,000 350,000 168,000 7,600 $1,350,400 $1,350,400 Additional information available at year-end: a. The Prepaid Arena Rental of $182,000 was paid on February 1, 2020. It represents seven months of rent on the arena. b. A count of the Repair Supplies at year-end revealed that $1,900 had been used. c. Annual depreciation of the skate equipment was $82,000. d. A review of the Unearned Training Revenue account at year-end showed that included in the balance was $12,600 that had not yet been earned. e. Accrued salaries of $58,000 had not been recorded at year-end. f. Interest of $1,800 had accrued regarding the Notes Payable. g. On June 5, 2020, cash of $92,000 was received for 2020/2021 training sessions (lessons begin in October) This amount is included in the Training Revenue balance. Required Prepare the annual adjusting entries on June 30, 2020, for each of (a) through (g) above.
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.
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