Corrected trial balance Tech Support Services has the following unadjusted trial balance as of January 31.20Y5: Debit Balances Credit Balances Cash 25,550 Accounts Receivable 44,050 Supplies 6,660 Prepaid Insurance 3,600 Equipment Notes Payable 162,000 75,000 Accounts Payable 13,200 Common Stock 18,000 Retained Earnings Dividends 33,000 83,850 Fees Earned Wages Expense 306,000 $34,000 Rent Expense 62,550 Advertising Expense 23,850 Gas, Electricity, and Water Expense 17,000 684,260 724,050 The debit and credit totals are not equal as a result of the following errors: A cash receipt of $4,100 was posted as a debit to Cash of $1,400. A debit of $12350 to Accounts Receivable was not A return of $235of defective supplies was erroneously posted as a $325 credit to Supplies. An insurance policy acqtured at a cost of $3,000 was posted as a credit to Prepaid The balance of Notes Payable was overstated by $000. A credit of $3,450 in Accounts Payable was overlooked when the balance of the account was determjned. A debit of $6,000 for ilividends was posted as a debit to Retafoed Earnings. i.The balance of $28,350 in Advertising Expense was entered as $23,850 in the trial balance. Miscellaneous Rxpense,with a balance of $4,600,was omitted from the trial balance. Instructions Prepare a corrected unadjusted trial balance as of January 31, 20Y5. 2.-Does the fact that tire unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? Explain
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.
Corrected
Tech Support Services has the following unadjusted trial balance as of January 31.20Y5:
|
|
Debit Balances |
Credit Balances |
|
Cash |
25,550 |
|
|
|
44,050 |
|
|
Supplies |
6,660 |
|
|
Prepaid Insurance |
3,600 |
|
|
Equipment Notes Payable |
162,000 |
75,000 |
|
Accounts Payable |
|
13,200 |
|
Common Stock |
|
18,000 |
|
|
33,000 |
83,850 |
|
Fees Earned Wages Expense |
306,000 |
$34,000 |
|
Rent Expense |
62,550 |
|
|
Advertising Expense |
23,850 |
|
|
Gas, Electricity, and Water Expense |
17,000 |
|
|
|
684,260 |
724,050 |
The debit and credit totals are not equal as a result of the following errors:
- A cash receipt of $4,100 was posted as a debit to Cash of $1,400.
- A debit of $12350 to Accounts Receivable was not
- A return of $235of defective supplies was erroneously posted as a $325 credit to Supplies.
- An insurance policy acqtured at a cost of $3,000 was posted as a credit to Prepaid
- The balance of Notes Payable was overstated by $000.
- A credit of $3,450 in Accounts Payable was overlooked when the balance of the account was determjned.
- A debit of $6,000 for ilividends was posted as a debit to Retafoed Earnings.
i.The balance of $28,350 in Advertising Expense was entered as
$23,850 in the trial balance.
- Miscellaneous Rxpense,with a balance of $4,600,was omitted from the trial balance.
Instructions
- Prepare a corrected unadjusted trial balance as of January 31, 20Y5.
2.-Does the fact that tire unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? Explain
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