Helping Hand Outdoor Services pre-sells yard maintenance packages for the gardening season. During October, the company collects cash from clients for Christmas trees to be delivered in December Snow removal services are also provided. Helping Hand prepares adjusting entries monthly. The following selected accounts appear on the November 30, 2023, unadjusted trial balance Account Onwarned lawn services Unearned garden services Unearted snow removal services Unearned Christmas tree sales Debit Credit $93,200 35.000 11,000 Required: Prepare the monthly adjusting journal entries at November 30, 2023, using the following additional information. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) a. $78,000 of the Unearned Lawn Services account represents payments received from customers for the 2024 season. The remainder represents fall lawn services actually performed during November 2023, b. $31.550 of the Uneamed Garden Services account had been earned by November 30, 2023, c. $8,800 of the Unearned Snow Removal Services account remained uneamed of November 30, 2023. d. Helping Hand arranges with its customers to deliver trees from December 5 to December 20. As a result, the Unnained Christmas free Sales account will be earned in total by December 20
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.
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