Exercise 1. Worksheet Donald Electronics an electronics repair shop, prepared the unadjusted trial balance at the end of its first year of operations shown below: Donald Electronics Trial Balance April 30, 2019 Cash 3,450 Accounts Receivable 22,500 Supplies 5,400 Equipment Accounts Payable 113,700 5,250 Unearned Fees 6,000 Hans Donald, Capital Hans Donald, Drawings 78,000 4,500 Fees earned 135,750 Salaries Expense 31,500 Rent Expense 24,000 Utilities Expense 17,250 Miscellaneous Expense 2,700 225,000 P 225,000 For preparing the adjusting entries, the following data were assembled: a. Fees earned but unbilled on April 30 were P1,775. b. Supplies on hand on April 30 were P1,200. c. Depreciation of equipment was estimated to be P4,100 for the year. d. The balance in unearned fees represented the April 1 receipt in advance for services to be provided. Only P1,750 of the services was provided between April 1 and April 30. e. Unpaid wages accrued on April 30 were P60o. Required: 1. Prepare the adjusting entries necessary on April 30, 2019. 2. Prepare a Ten-Column Worksheet.
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.
![Exercise 1. Worksheet
Donald Electronics an electronics repair shop, prepared the unadjusted trial balance at the end of its
first year of operations shown below:
Donald Electronics
Trial Balance
April 30, 2019
Cash
3,450
Accounts Receivable
22,500
Supplies
5,400
Equipment
Accounts Payable
113,700
5,250
Unearned Fees
6,000
Hans Donald, Capital
78,000
Hans Donald, Drawings
4,500
Fees earned
135,750
31,500
24,000
Salaries Expense
Rent Expense
Utilities Expense
17,250
Miscellaneous Expense
2,700
225,000 P
225,000
For preparing the adjusting entries, the following data were assembled:
a. Fees earned but unbilled on April 30 were P1,775.
b. Supplies on hand on April 30 were P1,200.
c. Depreciation of equipment was estimated to be P4,100 for the year.
d. The balance in unearned fees represented the April 1 receipt in advance for services to be
provided. Only P1,750 of the services was provided between April 1 and April 30.
e. Unpaid wages accrued on April 30 were P600.
Required:
1. Prepare the adjusting entries necessary on April 30, 2019.
2. Prepare a Ten-Column Worksheet.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd4bc3270-f55e-4a92-9e4a-41efc0f96ad3%2Fc5548471-b0d5-449d-a3b1-cac932e3b99b%2F1as04ru_processed.jpeg&w=3840&q=75)
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