From the above information, prepare a statement of activities for the year ended December 31, 2019.
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.
Recover Rehabilitation Hospital has the following balances that are extracted from its December 31, 2019,
| Account | Debit | Credit |
|
Nursing Services Expense. . . . . . . . . . Professional Fees Expense. . . . . . . . . . . . . . . . . . . . . . . General and Administrative Expense . . . . . . . . . . . . Interest Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Asset Whose Use Is Limited . . . . . . . . . . . . . . . . . . . . . Repairs and Maintenance Expense . . . . . . . . . . . . . . . . Provision for Uncollectible Accounts . . . . . . . . . . . . . . Contractual Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . Patient Service Revenues. . . .. . . . . . . . . . .. . . . . . . . Seminar Income.. . . .. . . . . . . . . . .. . . . . . . . Child Day Care Income. . . .. . . . . . . . . . .. . . . . . . . Parking Fees. . . .. . . . . . . . . . .. . . . . . . . Endowment Income—Temporarily Restricted. . . . . . Interest Income—Unrestricted . . . . . . . . . . . . Donations—Temporarily Restricted . . . . . . . . . Gains (Distributable) on Sale of Endowments—Temporarily Restricted. . . . . .. Net Assets—Unrestricted (January 1, 2019). . . . . . . . Net Assets—Temporarily Restricted (January 1, 2019). . Net Assets—Permanently Restricted (January 1, 2019). |
230,000 140,000 250,000 60,000 13,000 55,000 210,000 14,000 16,000
|
840,000 23,000 15,000 3,500 220,000 3,000 38,000 66,000 900,000 855,000 850,000 |
From the above information, prepare a statement of activities for the year ended December 31, 2019.
PLEASE USE THE FORMAT IN THE ATTACHED PICTURE TO PREPARE THE STATEMENT OF ACTIVITIES.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
