ces Golden Wedding Dress Company designs custom wedding dresses for brides to be. The person preparing the adjusting entries at year-end was unable to complete the adjustments due to illness. You have been given the following unadjusted trial balance along with some additional information for the December 31, 2023, year-end. Account Accounts receivable Accum. deprec., building Accum. deprec., equipment Advance sales Allowance for doubtful accounts. Building Cash Equipment Estimated warranty liability Unadjusted Balance Account 82,600 Land 134,000 Merchandise inventory 350,000 Mortgage payable 234,000 Note payable 600 Other operating expenses 451,000 Sales 88,900 Salaries & admin expense 655,000 Sales returns and allowances 5,000 Sarah Golden, capital 5. The mortgage is paid annually on the first day of the next year. interest and $24,874 principal for a total of $34,179. 6. Uncollectible accounts are estimated to be 1% of outstanding receivables. View transaction list $ Unadjusted Balance Required: 1. Based on the information provided, journalize the adjusting entries at December 31, 2023. 139,000 73,400 232,625 168,000 Other information: 1. Assume all accounts have a normal balance. 2.80% of the balance in the Advance Sales account is for wedding dresses to be made and delivered by Golden during 2024; the remaining 20% is from sales earned during 2023. 3. Golden warranties its wedding dresses against defects and estimates its warranty liability to be 3% of adjusted net sales. 4. The 4%, 5-year note payable was issued on October 1, 2023; interest is payable annually each September 30. 1,179,000 1,363,000 60,890 9,400 251,965 next mortgage payment will be paid consisting of $9,305 7. A physical count of the inventory showed a balance actually on hand of $63,400. 8. Sarah promised her operations manager a year-end performance bonus of $2,381, which would be paid with her salary in January for high sales achieved this year.
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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