Billy Bob's Barber Shop Work Sheet For the month ended January 31st, 2020 Trial Balance Adjustments Dr Adjusted Trial Balance Dr 5.539 Income Statement Cr Balance Sheet Dr Account Cr Dr 25,539 60 Cr Cr casn aCoums Rec inventory supplles pre ba id rent Prephid ins. Farnitule Acc dep-Fum. Barbe'rchair#l. ACL dep #1 Barber Chair H2 ACC.dep-2 ACC pavable. Salavies pay 410 8400 3300 300 63 00 3p25 375 300 30 00 20 20 2400 2900 20 20 410 900 Utlitus pay Cuptal Stock tetainedean mdenas uhcame summaly Fecceamca GainClossI on Sare sales cost of meich Sold 59larus expense Rent Expense Su bpl es expens dep Gxpensu Insuranceexp utilitier exD. aav. expene Legal exp. mYsc. expense 405 40,000 125 125 6,684 4650 2100 200 40 3.150 900 2100 300 40 215 405 405 110 47,094 47,074 4020 48,439 48.439 47, 094 48, 439
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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