Blossom Company shows the following balances in selected accounts of its adjusted trial balance. Supplies $ 30,000 Service Revenue $ 105,000 Supplies Expense 5,000 Salaries and Wages Expense 35,000 Accounts Receivable 11,000 Utilities Expense 7,000 Owner’s Drawings 20,000 Rent Expense 16,000 Owner’s Capital 70,000 Journalize the closing entries at December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 enter an account title to close revenue account on December 31 enter a debit amount enter a credit amount enter an account title to close revenue account on December 31 enter a debit amount enter a credit amount (To close revenue account) Dec. 31 enter an account title to close expense accounts on December 31 enter a debit amount enter a credit amount enter an account title to close expense accounts on December 31 enter a debit amount enter a credit amount enter an account title to close expense accounts on December 31 enter a debit amount enter a credit amount enter an account title to close expense accounts on December 31 enter a debit amount enter a credit amount enter an account title to close expense accounts on December 31 enter a debit amount enter a credit amount (To close expense accounts) Dec. 31 enter an account title to close net income / (loss) on December 31 enter a debit amount enter a credit amount enter an account title to close net income / (loss) on December 31 enter a debit amount enter a credit amount (To close net income / (loss)) Dec. 31 enter an account title to close drawings on December 31 enter a debit amount enter a credit amount enter an account title to close drawings on December 31 enter a debit amount enter a credit amount (To close drawings)
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.
Blossom Company shows the following balances in selected accounts of its adjusted
|
Supplies
|
$ 30,000 |
Service Revenue
|
$ 105,000 | |||
|---|---|---|---|---|---|---|
|
Supplies Expense
|
5,000 |
Salaries and Wages Expense
|
35,000 | |||
|
|
11,000 |
Utilities Expense
|
7,000 | |||
|
Owner’s Drawings
|
20,000 |
Rent Expense
|
16,000 | |||
|
Owner’s Capital
|
70,000 |
Journalize the closing entries at December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
|
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
|---|---|---|---|
|
Dec. 31
|
enter an account title to close revenue account on December 31
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to close revenue account on December 31
|
enter a debit amount
|
enter a credit amount
|
|
|
(To close revenue account)
|
|||
|
Dec. 31
|
enter an account title to close expense accounts on December 31
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to close expense accounts on December 31
|
enter a debit amount
|
enter a credit amount
|
|
|
enter an account title to close expense accounts on December 31
|
enter a debit amount
|
enter a credit amount
|
|
|
enter an account title to close expense accounts on December 31
|
enter a debit amount
|
enter a credit amount
|
|
|
enter an account title to close expense accounts on December 31
|
enter a debit amount
|
enter a credit amount
|
|
|
(To close expense accounts)
|
|||
|
Dec. 31
|
enter an account title to close net income / (loss) on December 31
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to close net income / (loss) on December 31
|
enter a debit amount
|
enter a credit amount
|
|
|
(To close net income / (loss))
|
|||
|
Dec. 31
|
enter an account title to close drawings on December 31
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to close drawings on December 31
|
enter a debit amount
|
enter a credit amount
|
|
|
(To close drawings)
|
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