From the partial worksheet, journalize the closing entries for December 31 for A. Peters Co. (Click the icon to view the completed worksheet.) (Record debits first, then credits. Exclude explanations from journal entries.) A. Peters Co. Partial Worksheet Start by journalizing the entry to close revenues. For the Year Ended December 31, 2019 Journal Entry Income Statement Balance Sheet Date Accounts PR Dr. Cr. Account Titles Dr. Cr. Dr. Cr. Dec. 31 Cash 191 Merchandise Inventory 454 Prepaid Advertising 558 Prepaid Insurance 34 Office Equipment 1,068 Accum. Dep'n., Office Equip. 206 Accounts Payable 255 A. Peters, Capital 965 Sales 5,693 Sales Returns and Allowances 219 Sales Discounts 106 Cost of Goods Sold 2,628 Salaries Expense 1,086 Insurance Expense 694 Utities Expense 44 Plumbing Expense 61 Advertising Expense 18 Dep'n. Expense, Office Equip. 32 74 Salaries Payable 4,888 805 5,693 2,305 1,500 805 Net Income 5,693 5,693 2,305 2,305
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.
HI I'm having trouble journalizing the closing entries for this practice question.
From the partial worksheet (see screeshots attached,, journalize the closing entries for December 31 for A. Peters Co.
What accounts should I post to?
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