Financial Statement Preparation - II. The following accounts were taken from the adjusted trial balance of Mariell's Beauty Salon, a Calendar - year business, as of December 31, 2019 (disregarding effect of income taxes): Debit Credit Debit Credit P54,000 Interest Income Accounts Payable Accounts Receivable P96,000 15,000 Interest Receivable 15,000 Accumulated 20,000 Investment Income 3,500 Depreciation- Beauty Machine Accumulated 10,000 Investment in 70,000 Depreciation - Trading Securities Furniture and Fixture Accumulated 6,500 Notes Receivable - 150,000 Depreciation - Office due in two years Equipment Allowance for Doubtful Accounts Mariell, Capital 15,000 Office Equipment 70,000 ? Office Supplies 8,000 Mariell, Drawing 40,000 Salon Revenues 980,000 Beauty Machine 220,000 Rent Expense 144,000 Cash 120,000 Salaries Expense 312,000 Depreciation 36,500 Salaries Payable 12,000 Expense Doubtful Accounts 15,000 Utilities Expense 77,500 Expense Furniture and Fixture 120,000 Totals P1,494,000 P1,494,000 Prepare the following: 1. Income Statement- natural form 2. Statement of Changes in Owner's Equity 3. Statement of Financial Position - report form
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.
![Financial Statement Preparation - II. The following accounts were taken from the
adjusted trial balance of Mariell's Beauty Salon, a Calendar - year business, as of December
31, 2019 (disregarding effect of income taxes):
Debit
Credit
Debit
Credit
Accounts Payable
P54,000 Interest Income
15,000
Accounts Receivable P96,000
15,000
Interest Receivable
Accumulated
20,000 Investment Income
3,500
Depreciation- Beauty
Machine
Accumulated
10,000 Investment in
70,000
Depreciation -
Trading Securities
Furniture and Fixture
Accumulated
6,500 Notes Receivable -
150,000
Depreciation - Office
due in two years
Equipment
Allowance for
15,000 Office Equipment
70,000
Doubtful Accounts
Mariell, Capital
? Office Supplies
8,000
Mariell, Drawing
Beauty Machine
40,000
Salon Revenues
980,000
220,000
Rent Expense
144,000
Cash
120,000
Salaries Expense
312,000
Depreciation
36,500
Salaries Payable
12,000
Expense
Doubtful Accounts
15,000
Utilities Expense
77,500
Expense
Furniture and Fixture 120,000
Totals
P1,494,000 P1,494,000
Prepare the following:
1. Income Statement - natural form
2. Statement of Changes in Owner's Equity
3. Statement of Financial Position - report form](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0c89725c-e616-44c6-8fea-09403a40a31d%2F620a4e01-5ba4-4110-8a4c-27bb232b3f62%2Fr52l29_processed.jpeg&w=3840&q=75)
![Financial Statements Preparation – 1. The following accounts were taken from the
adjusted trial balance of Alvaro Printing Press, a calendar-year business, as of December
31, 2019 (disregard effect on income taxes):
63
Debit
Credit
Debit
Credit
Accounts Payable
P35,000 Interest Payable
3,600
Accounts Receivable
P82,000
Investment in Trading
70,000
Securities
Accumulated
1,000 Mortgage Payable
15,000
Depreciation- Fumiture
and Fixture
Accumulated
2,250 Notes Payable – due in
30,000
Depreciation - Office
two years
Equipment
Accumulated
6,250 Notes Receivable - due
150,000
Depreciation - Pressing
in six months
Machine
10,000 Office Equipment
Accumulated
20,000
Depreciation - Printing
Machine
5,000 Office Supplies
Allowance for Doubtful
8,000
Accounts
Alvaro, Capital
? Pressing Machine
40,500
Alvaro, Drawing
30,000
Printing Machine
55,000
Cash
120,000
Printing Revenues
580,000
Depreciation Expense
19,500
Printing Supplies
25,000
Doubtful Accounts
5,000
Rent Expense
48,000
Expense
Furniture and Fixture
10,000
Salaries Expense
260,000
Insurance Expense
12,000
Salaries Payable
10,000
Interest Expense
3,600
Supplies Expense
12,000
Interest Income
18,000 Utilities Expense
27,500
Interest Receivable
18,000
Totals
P1,016,100 P1,016,100
Prepare the following:
1. Income Statement – natural form
2. Statement of Changes in Owner's Equity
3. Statement of Financial Position – report form](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0c89725c-e616-44c6-8fea-09403a40a31d%2F620a4e01-5ba4-4110-8a4c-27bb232b3f62%2Fz4xo3t_processed.png&w=3840&q=75)
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