inentorng penses Ast of G O Copyright 2020 Dr. Kirk Lynch Mountain Top Hardware Practice Set R4V1 Adjusting entries: The standard financial period for Mountain Top is one month so financial statements and the closing process are executed at the end of each month. Once the 50 transactions (book 3) have been record and posted to the appropriate general ledger accounts, prepare an unadjusted trial balance. Once the Unadjusted Trial Balance is correct (you instructor can verify), use the following adjustment data to prepare the adjusting entries: 1. Physical count end of month shows merchandise inventory balance should be $31,000.86 2. Office supplies on hand end of month 3. Store supplies on hand end of month 4. Insurance expired during month 5. Depreciation store equipment for the month 6. Depreciation office equipment for the month 7. Interest earned on Note Receivable 8. Accrued Sales Salaries 500.00 1800.00 600.00 1000.00 500.00 40.00 950.00 Accrued Office Salaries 650.00 9. Record estimated returns for June Sales a. Customer refunds (debit sales and credit Customer Refunds Payable) b. Returns inventory (debit Estimated Returns Inventory and credit cost of merchandise sold 1500.00 750.00 Journalize these adjusting entries (above) in the general journal on page two of the general journal (the opposing page of this book). Post these journal entries to the general ledger accounts in book 2. Prepare an adjusted trial balance. Use this adjusted trial balance to prepare the financial statements. Treat this as a compound journal entry!
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.
The adjusted
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