Beacons Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Beacons Company prepared the following end-of-period spreadsheet at December 31, 20Y5, the end of the fiscal year: A B Вeаcons Company End-of-Period Spreadsheet D E G 2 3 For the Year Ended December 31, 20Y5 4 Unadjusted Adjusted Adjustments Cr. Trial Balance Trial Balance 6 Account Title Dr. Cr. Dr. Dr. Cr. 7 10,800 38,900 4,200 8 Cash 9 Accounts Receivable 10 Prepaid Insurance 11 Supplies 12 Land 13 Building 14 Accum. Depr.-Building 15 Equipment 16 Accum. Depr.-Equipment 17 Accounts Payable 18 Salaries & Wages Payable 10,800 9,100 48,000 1.050 3,150 2,180 2,730 98,000 400,000 550 98,000 400,000 205,300 12,000 217,300 101,000 101,000 4,800 85, 100 15,700 89,900 15,700 5,000 1,000 75,000 128,100 5,000 1,100 2,100 75,000 128,100 19 Unearned Rent 20 Common Stock 21 Retained Earnings 22 Dividends 23 Fees Earned 24 Rent Revenue 25 Salaries & Wages Expense 26 Advertising Expense 27 Utilities Expense 28 Depr. Exp.-Bullding 29 Repairs Expense 30 Depr. Exp.-Equipment 31 Insurance Expense 32 Supplies Expense 33 Misc. Expense 10,000 10,000 9,100 1,100 363,700 372,800 1,100 163, 100 21,700 16,400 158,100 5,000 21,700 16,400 12,000 12,000 8,850 8,850 4,B00 4,800 3,150 2,180 3,150 2,180 4,320 37.330 905.900 4,320 875,000 875.000 34 37.330 905.900 35 (Continued) Instructions 1. Prepare an income statement for the year ended December 31, 20Y5. 2. Prepare a statement of stockholders' equity for the year ended December 31, 20Y5. During the year, common stock of $25,000 was issued. 3. Prepare a balance sheet as of December 31, 20Y5. 4. Based upon the end-of-period spreadsheet, journalize the closing entries. 5. Prepare a post-closing trial balance.
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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