ElecBooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit or credit balances. Amounts in the list of accounts are rounded to the nearest thousand dollars. Assume the year ended on September 30, 2020. Accounts Payable $ 311 Accounts Receivable 221 Accrued Liabilities 384 Accumulated Depreciation 330 Cash 337 Contributed Capital 181 Depreciation Expense 370 General and Administrative Expenses 387 Income Tax Expense 332 Interest Revenue 122 Long-Term Debt 226 Other Current Assets 101 Other Long-Lived Assets 551 Other Operating Expenses 227 Prepaid Expenses 124 Property and Equipment 2,232 Retained Earnings 1,535 Selling Expenses 2,695 Service Revenues 6,669 Short-Term Bank Loan 506 Store Operating Expenses 2,256 Supplies 636 Deferred Revenue 205 Required: Prepare an adjusted trial balance at September 30, 2020. (Enter your answers in thousands.) Please donot provide solution in image format provide solution in step by step format and fast solution
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.
ElecBooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit or credit balances. Amounts in the list of accounts are rounded to the nearest thousand dollars. Assume the year ended on September 30, 2020.
| Accounts Payable | $ | 311 |
| |
221 | |
| Accrued Liabilities | 384 | |
| |
330 | |
| Cash | 337 | |
| Contributed Capital | 181 | |
| Depreciation Expense | 370 | |
| General and Administrative Expenses | 387 | |
| Income Tax Expense | 332 | |
| Interest Revenue | 122 | |
| Long-Term Debt | 226 | |
| Other Current Assets | 101 | |
| Other Long-Lived Assets | 551 | |
| Other Operating Expenses | 227 | |
| Prepaid Expenses | 124 | |
| Property and Equipment | 2,232 | |
| |
1,535 | |
| Selling Expenses | 2,695 | |
| Service Revenues | 6,669 | |
| Short-Term Bank Loan | 506 | |
| Store Operating Expenses | 2,256 | |
| Supplies | 636 | |
| Deferred Revenue | 205 |
Required:
Prepare an adjusted
Please donot provide solution in image format provide solution in step by step format and fast solution
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