Eva's Laundry Trial Balances May 31, 2019 Unadjusted Adjusted Debit Credit Debit Balances Balances Credit Balances Balances Cash 7,500 7,500 Accounts Receivable. 18,250 23,250 Laundry Supplies. Prepaid Insurance* Laundry Equipment Accumulated Depreciation-Laundry Equipment.. Accounts Payable Wages Payable . Eva Baldwin, Capital. Eva Baldwin, Drawing Laundry Revenue. Wages Expense Rent Expense. Utilities Expense Depreciation Expense Laundry Supplies Expense Insurance Expense Miscellaneous Expense 3,750 6,750 5,200 1,600 190,000 177,000 48,000 48,000 9,600 9,600 1,000 110,300 110,300 28,775 28,775 182,100 182,100 49,200 49,200 25,575 25,575 18,500 13,000 18,500 3,000 600 3,250 3,250 358,000 350,000 350,000 351,000 53.600 of insurance exnired during the vear
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.
The accountant for Eva’s Laundry prepared the following unadjusted and adjusted trial
balances. Assume that all balances in the unadjusted
adjustments are correct. Identify the errors in the accountant’s
that none of the accounts were affected by more than one adjusting entry.
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