Closing Entries Use the Adjusted Trial Balance below for the Year Ended December 31, 2020 to complete the closing entries on the journal page in the Exam 1 format document. You should have 2 entries closing revenues, expenses and dividends. Debit Credit Cash 10,000 Accounts Receivable 3,000 Supplies 200 Building 100,000 Accum. Depreciation 15,000 Accounts Payable 3,200 Notes Payable 5,000 Common Stock 5,000 Retained Earnings 10,000 Dividends 1.500 Fees Earned 85,200 Rent Expense 4,000 Telephone Expense 2.500 Depreciation Expense 2.200 Total 123.400 123,400
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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Closing Entries
Use the Adjusted Trial Balance below for the Year Ended December 31,
2020 to complete the closing entries on the journal page in the Exam 1
format document. You should have 2 entries closing revenues, expenses
and dividends.
Debit
Credit
Cash
10,000
Accounts Receivable
3,000
Supplies
200
Building
100,000
Accum. Depreciation
15.000
Accounts Payable
3,200
Notes Payable
5,000
Common Stock
5,000
Retained Earnings
10,000
Dividends
1,500
Fees Earned
85.200
Rent Expense
4,000
Telephone Expense
2,500
Depreciation Expense
2.200
Total
123.400
123.400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9e9bcea8-2108-424e-82d9-96d70fdb2eed%2F6c705bf4-d21e-45c6-9626-b784edc17ee7%2Fp428d2e_processed.jpeg&w=3840&q=75)
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