JFB Company Trial Balance December 31, 202A Account Title Debit Credit Cash 151,200 2,500 Accounts Receivable Allowance for bad Debts 525 Notes receivable Merchandise Inventory 25,005 12,000 Purchases 30,000 Purchase Returns and Allowances 2,000 |Supplies Store Furniture Store Equipment Accumulated Depreciation Accounts Payable 1,500 75,000 200,000 3,170 200,000 Accrued Salaries Payable 1,512 Notes Payable Kris Ang. Capital Kris Ang, Withdrawal 32,705 237,500 2,000 Sales 49,450 1,200 525 Sales Returns and Allowances Bad debts expense Advertising expense Rent Expense Salaries expense Supplies Expense Utilities expense Wages expense 1,000 5,000 1,512 1,000 1,800 2,500 Maintenance expense 4,500 Freight out Freight in Depreciation expense Miscellaneous expense Total 750 1,500 3,170 3,200 526,862 526,862 Additional Information: a. Supplies physical inventory, December 31, 202A is P450. b. Merchandise Inventory end is P20,000. c. Interest is 10% per annum. Notes receivable is dated October 1, 202A. d. Returned merchandise by the customer amounting to P500 was received on December 31, 202A. Already included in the inventory count but not yet recorded. e. Advertising material left on hand is P500. Required: 1. the balance on a worksheet and complete the worksheet using the data provided for adjusting entries. 2. Prepare the Income Statement and Balance Sheet. 3. From the worksheet, journalize the adjusting entries. 4. Prepare the closing entries 5. Prepare the post-closing trial balance 6. Prepare the reversing entries
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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Please prepare the closing entries, post-closing
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