Dř. Dř. Cash $ 11,000 $ 11,000 Accounts Receivable 20,000 23,500 Supplies Prepaid Insurance 8,400 3,000 3,350 2,500 Equipment Accumulated Depreciation-Equipment Accounts Payable Interest Payable 60,000 б0,000 $ 28,000 $ 33,000 5,000 5,000 -0- 150 Notes Payable 5,000 5,000 Unearned Service Revenue 7,000 5,600 Salaries and Wages Payable -0- 1,300 Common Stock 10,000 10,000 Retained Earnings 3.500 3:500 Service Revenue 58,600 63,500 Salaries and Wages Expense Insurance Expense Interest Expense 10,000 11,300 850 350 500 Depreciation Expense Supplies Expense 5,000 5.400 Rent Expense 4,000 4,000 $117,100 $117,100 $127,050 $127,050 structions a. Journalize the annual adjusting entries that were made. (Omit explanations.) b. Prepare an income statement and a retained earnings statement for the year ending December 31, 2020, and an unclassified balance sheet at December 31. c. Answer the following questions. 1. If the note has been outstanding 3 months, what is the annual interest rate on that note? 2. If the company paid $12,500 in salaries and wages in 2020, what was the balance in Salaries and Wages Payable on December 31, 2019?
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.
Unresolved Advertising was founded in January 2013. Presented below are adjusted and unadjusted
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