Good Note Company Trial Balances November 30, 2018 Unadjusted Adjusted Debit Balances Balances Credit Debit Balances Balances Credit Cash 38,250 38,250 Accounts Receivable.. 89,500 89,500 Supplies.. Prepaid Insurance Equipment.. Accumulated Depreciation-Equipment. 11,250 2,400 14,250 3,850 290,450 290,450 94,500 106,100 Automobiles... 129,500 129,500 Accumulated Depreciation-Automobiles Accounts Payable Salaries Payable. 54,750 62,050 24,930 26,130 8,100 Unearned Service Fees. 18,000 9,000 Common Stock 100,000 100,000 Retained Earnings 224,020 224,020 Dividends 75,000 75,000 Service Fees Earned 733,800 742,800 Salary Expense.. Rent Expense Supplies Expense.. Depreciation Expense-Equipment. Depreciation Expense-Automobiles Utilities Expense 516,900 525,000 54,000 54,000 8,850 11,600 7,300 12,900 14,100 Taxes Expense.. Insurance Expense Miscellaneous Expense 8,175 8,175 10,400 9,825 9,825 1,250,000 1,250,000 1,278,200 1,278,200
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.
Good Note Company specializes in the repair of music equipment and is owned and operated by Robin Stahl. On November 30, 2018, the end of the current year, the accountant for Good
Note prepared the following
Instructions
Journalize the seven entries that adjusted the accounts at November 30. None of the accounts
were affected by more than one
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
