Instructions Prepare an income statement, a retained carnings statement, and a balance sheet from the trial balance below. The Account names will be from the Chart of Accounts tab, and the titles will be from the Title tab. Key Chart of Accounts Titles Dates Date Drop-Down Options For the Year Ended July 31, 2022 July 31, 2022 Plevin Company Adjusted Trial Balance July 31. 2022 Accounts Debit Credit Cash 9,840 Accounts Receivable 8,780 Equipment Accumulated Depreciation - Equipment Accounts Payable 15,900 7,400 4.220 Unearned Rent Revenue L800 Common Stock 20,000 Retained Earmings 25,200 Dividends 16,000 Service Revenue 64,000 Rent Revenue 6.500 Depreciation Expense Salaries and Wages Expense Utilities Expense 8,000 55,700 14,900 Totals 129,120 129.120 Plevin Company Income Statement Plevin Company Statement of Retained Earnings *f less type in a negative number *V less tpe in a negative number Plevin Company Balance Sheet
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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