The trial balances before and after adjustments for Old Julian Calendars at the end of its fiscal year are presented below. Old Julian Calendars Trial Balance September 31, 2021 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Unearned Service Revenue Unearned Rent Revenue Common Stock Service Revenue Rent Revenue Salaries and Wages Expense Supplies Expense Insurance Expense Depreciation Expense Before Adjustment Dr. Cr. $15,080 14,960 2,760 5,800 13,300 36,225 0 0 0 $88,125 $5,220 9,860 0 2,175 2,100 18,395 48,800 1,575 $88,125 After Adjustment Dr. $15,080 16,110 885 1,450 13,300 40,725 1,875 4,350 1,740 $95.515 Cr. $6,960 9,860 4,500 1,150 525 18,395 50,975 3,150 $95,515 Prepare the adjusting entries that were made. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts)
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.
![Account Titles and Explanation
(To record service revenue not yet billed to customers)
(To record supplies expense)
(To recognize insurance expense expired)
(To record depreciation for the period)
(To record salaries payable)
(To record service revenue earned with prior payment)
(To record rent revenue earned with prior payment)
Debit
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Credit
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