Instructions: Determine the adjusting entries that were made. Write your answers on the general journal pwovided. The unadjusted and adjusted December 31, 2018 Trial Ba;ances br the A. T. Design are presented below A. T. Design Trial Balance December 31, 2018 Unadjusted 72,000 331,000 Adjusted 72,000 331,000 36,000 Cash Accounts Receivable Prepaid Insurance Supplies Land 48,000 125,000 72,000 170,000 850,000 170,000 Building Accumulaled Depreciation-Building Computer Equipment Accumulated Depreciation-Computer Equipment Notes Payable Accounts Payable Salaries Payable Interest Payable Morgage Payable Tejero, Capital Tejero, Withdrawals Computer-Aided Design Service Revenues Salaries Expense Insurance Expense Supplies Expense Depreciation Expense-Building Depreciation Depreciation-Computer Equipment Interest Expense Total 850,000 230,000 245,000 620,000 620,000 106,000 550,000 124,000 550,000 143,000 143,000 34,000 77,000 470,000 470,000 310,000 310,000 250,000 250,000 1,470,000 1,470,000 847,000 12,000 813,000 53,000 15,000 18,000 77,000 3.423,000 3,279,000 3,279,000 3,423,000 Required: Determine the adjustments that were made.
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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