During the fiscal year ended September 30, 2017, the following transactions (summarized) occurred in the Town of Berthoud Information Technology Internal Service Fund: Employees were paid $390,000 Utility bills received from the Town of Berthoud’s Utility Fund during the year amounted to $33,500 Office expenses paid in cash during the year amounted to $10,500. Services supplies purchased on account during the year totaled $167,500 Parts and supplies used during the year totaled $152,300 (at cost) Charges to departments during the fiscal year were as follows: General Fund $408,700 Street Fund $379,300 Payments to the Utility Fund totaled $21,800. Annual depreciation totaled $40,000 for machinery and equipment. Prepare Journal Entries
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.
During the fiscal year ended September 30, 2017, the following transactions (summarized) occurred in the Town of Berthoud Information Technology Internal Service Fund:
- Employees were paid $390,000
- Utility bills received from the Town of Berthoud’s Utility Fund during the year amounted to $33,500
- Office expenses paid in cash during the year amounted to $10,500.
- Services supplies purchased on account during the year totaled $167,500
- Parts and supplies used during the year totaled $152,300 (at cost)
- Charges to departments during the fiscal year were as follows:
General Fund $408,700
Street Fund $379,300
- Payments to the Utility Fund totaled $21,800.
- Annual
depreciation totaled $40,000 for machinery and equipment.
Prepare
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
