Here's the adjustments needed: (a) A physical count of office supplies shows $490 of supplies on hand at year end. (b) The balance of the prepaid insurance account represents the payment of a one year policy which was paid on July 1. (c) Additional depreciation on the equipment for the year totals $2,780. (d) The bank account was changed to an interest bearing account in December. The amount of interest earned in December was $54. This amount was reported on the December bank statement which was received early in January and has not been recorded on the books. (e) It was discovered that additional wages for one employee of $540 had been earned by year end but will not be paid until the January 10 payroll. (f) The amount shown for rent expense represents a payment made on November 1 for 5 months’ rent. (Hint—think about whether all of this balance represents rent expense at December 31). (g) The Repair Fees Earned account includes a $1,800 advance payment made by a customer on December 30 for repair services to be performed on January 5. What would all my adjusting entries be? and what would the adjusted trial balance look like?
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.
Here I am asked to, based off this unadjusted
I can only use the accounts listed in the trial balance.
Here's the adjustments needed:
(a) A physical count of office supplies shows $490 of supplies on hand at year end.
(b) The balance of the prepaid insurance account represents the payment of a one year policy which was paid on July 1.
(c) Additional
(d) The bank account was changed to an interest bearing account in December. The amount of interest earned in December was $54. This amount was reported on the December bank statement which was received early in January and has not been recorded on the books.
(e) It was discovered that additional wages for one employee of $540 had been earned by year end but will not be paid until the January 10 payroll.
(f) The amount shown for rent expense represents a payment made on November 1 for 5 months’ rent. (Hint—think about whether all of this balance represents rent expense at December 31).
(g) The Repair Fees Earned account includes a $1,800 advance payment made by a customer on December 30 for repair services to be performed on January 5.
What would all my
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
