December 9 FastForward December 10 FastForward pays CalTech Supply $900 cash as partial payment for its December 11 FastForward pays $200 cash for dividends. December 12 Fast Forward receives $3,000 cash in advance of providing consulting record fees collected in advance in a balance sheet account. December 13 Fast Forward pays $2,400 cash (insurance premium) for a 24-month insu company's policy is to record all prepaid expenses in a balance shee December 14 Fast Forward pays $120 cash for supplies. December 15 Fast Forward pays $305 cash for December utilities expense. December 16 Fast Forward pays $700 cash in employee salary for work performed in General Journal Requirement General Ledger St Retained Earnings Review the statement of retained earnings and indicate how the statement is linked FastForward Statement of Retained Earnings For Month Ended December 31, 2021 $ Retained earnings, December 1, 2021 Add: Net income Less: Dividends Retained earnings, December 31, 2021 Trial Balance Ending retained earnings is transferred to the: T < Incor Income Statement $ 0 3,470 (200) 3,270 General Journal General Ledger Trial Balance Statement of Retained Earnings Balance Sheet
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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