Blessinger Company Adjusted Trial Balance December 31 Debit Credit Cash $ 112,000 Accounts receivable 27,000 Prepaid rent 15,000 Prepaid Insurance 9, 000 Office supplies 3, 300 office equipment 38, 000 Accumulated depreciation -Equipment $ 3,200 Building 288, 000 Accumulated depreciation Building 42, 000 Land 700, 000 Accounts payable 25, 800 Salaries payable 14, 500 interest payable 2, 500 Long-term note payable 72, 000 P. Blessinger, Capital 910, 000 P. Blessinger, Withdrawals 200, 500 Services revenue 430, 800 Salaries expense 90, 000 Insurance expense 5,200 Rent expense 5, 000 Depreciation expense Equipment 800 Depreciation expense Building 7, 000 Totals: S 1,500, 800 $ 1,500, 800 Required: (a) Prepare a classified year-end balance sheet. (Note: A $9, 000 installment on the long-term note payable is due within one year) (b) Prepare the required closing entries
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.
Blessinger Company Adjusted
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