Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 20Y3, follows: Elite Realty UNADJUSTED TRIAL BALANCE March 31, 20Y3 ACCOUNT TITLE DEBIT CREDIT 1 Cash 26,700.00 2 Accounts Receivable 59,100.00 3 Prepaid Insurance 3,500.00 4 Office Supplies 1,500.00 5 Accounts Payable 13,300.00 Common Stock 10,000.00 7 Retained Earnings 38,000.00 8 Dividends 1,500.00 9 Fees Earned 232,500.00 10 Salary and Commission Expense 147,700.00 11 Rent Expense 28,000.00 12 Advertising Expense 17,700.00 13 Automobile Expense 4,200.00 14 Miscellaneous Expense 3,900.00 15 Totals 293,800.00 293,800.00 The following business transactions were completed by Elite Realty during April 20Y3. Enter the transactions through the 23rd on Page 18 of the two-column journa Apr. 1 Paid rent on office for month, $3,500. 2 Purchased office supplies on account, $2,300. Paid insurance premiums, $5,900. 10 Received cash from clients on account, $52,400. 15 Purchased land for a future building site for $208,500, paying $26,000 in cash and giving a note payable for the remainder. 17 Paid creditors on account, $6,250 20 Returned a portion of the office supplies purchased on April 2, receiving full credit for their cost, $350.
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.
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
|---|---|---|---|---|---|---|---|---|
|
1
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
9
|
|
|
|
|
|
|
|
|
|
10
|
|
|
|
|
|
|
|
|
|
11
|
|
|
|
|
|
|
|
|
|
12
|
|
|
|
|
|
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
14
|
|
|
|
|
|
|
|
|
|
15
|
|
|
|
|
|
|
|
|
|
16
|
|
|
|
|
|
|
|
|
|
17
|
|
|
|
|
|
|
|
|
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 4 images
