Crazy Mountain Tours Co. is a travel agency. The nine transactions recorded by Crazy Mountain Tours during May 20Y2, its first month of operations, are indicated in the following T accounts: Cash Transaction Debit amount Transaction Credit amount (1) 34,000 (2) 2,400 (7) 13,600 (3) 4,400 (4) 3,750 (6) 10,200 (9) 3,400 Equipment Transaction Debit amount Transaction Credit amount (3) 24,500 Dividends Transaction Debit amount Transaction Credit amount (9) 3,400 Accounts Receivable Transaction Debit amount Transaction Credit amount (5) 18,350 (7) 13,600 Accounts Payable Transaction Debit amount Transaction Credit amount (6) 10,200 (3) 20,100 Service Revenue Transaction Debit amount Transaction Credit amount (5) 18,350 Supplies Transaction Debit amount Transaction Credit amount (2) 2,400 (8) 1,350 Common Stock Transaction Debit amount Transaction Credit amount (1) 34,000 Operating Expenses Transaction Debit amount Transaction Credit amount (4) 3,750 (8) 1,350 Question Content Area a. Prepare an unadjusted trial balance. List all the accounts in the order of Assets, Liabilities, Stockholders’ equity, Revenues, and Expenses. Place the amounts in the proper columns. If an entry is not required in an amount box, leave it blank. Crazy Mountain Tours Co.Unadjusted Trial BalanceMay 30, 20Y2 Line Item Description Debit Balances Credit Balances - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - Total Total Total
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.
Crazy Mountain Tours Co. is a travel agency. The nine transactions recorded by Crazy Mountain Tours during May 20Y2, its first month of operations, are indicated in the following T accounts:
Cash| Transaction | Debit amount | Transaction | Credit amount |
|---|---|---|---|
| (1) | 34,000 | (2) | 2,400 |
| (7) | 13,600 | (3) | 4,400 |
| (4) | 3,750 | ||
| (6) | 10,200 | ||
| (9) | 3,400 |
Equipment
| Transaction | Debit amount | Transaction | Credit amount |
|---|---|---|---|
| (3) | 24,500 |
Dividends
| Transaction | Debit amount | Transaction | Credit amount |
|---|---|---|---|
| (9) | 3,400 |
| Transaction | Debit amount | Transaction | Credit amount |
|---|---|---|---|
| (5) | 18,350 | (7) | 13,600 |
Accounts Payable
| Transaction | Debit amount | Transaction | Credit amount |
|---|---|---|---|
| (6) | 10,200 | (3) | 20,100 |
Service Revenue
| Transaction | Debit amount | Transaction | Credit amount |
|---|---|---|---|
| (5) | 18,350 |
Supplies
| Transaction | Debit amount | Transaction | Credit amount |
|---|---|---|---|
| (2) | 2,400 | (8) | 1,350 |
Common Stock
| Transaction | Debit amount | Transaction | Credit amount |
|---|---|---|---|
| (1) | 34,000 |
Operating Expenses
| Transaction | Debit amount | Transaction | Credit amount |
|---|---|---|---|
| (4) | 3,750 | ||
| (8) | 1,350 |
Question Content Area
a. Prepare an unadjusted
Line Item Description |
Debit Balances |
Credit Balances |
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| Total | Total | Total |
b. Based upon the unadjusted trial balance, determine the net income or net loss.
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