Joy Company reports these account balances at December 31, 2011 after closing entries have been made: Accounts Payable 65,000 Land 62,000 Equipment 88,000 Cash 50,000 Accounts Receivable 80,000 Accumlated Depreciation 50,000 Buildings 110,000 Common Stock 180,000 Retained Earnings 75,000 Unearned Revenue 20,000 On January 1, 2012, Joy collected 20,000 of its accounts receivable, paid 10,000 of accounts payable, and sold 30,000 of additional shares of common stock. 1. In a trial balance prepared at December 31, 2011, the total of the debit column is: 2. After recording the January 1, 2012 transactions, in a trial balance prepared at January 1, 2012, the total of the debit column is: 3. After recording the January 1, 2012 transactions, on January 1, 2012, the balance sheet would balance at:
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.
Joy Company reports these account balances at December 31, 2011 after closing entries have been made:
Accounts Payable 65,000
Land 62,000
Equipment 88,000
Cash 50,000
Accumlated
Buildings 110,000
Common Stock 180,000
Unearned Revenue 20,000
On January 1, 2012, Joy collected 20,000 of its accounts receivable, paid 10,000 of accounts payable, and sold 30,000 of additional shares of common stock.
1. In a
2. After recording the January 1, 2012 transactions, in a trial balance prepared at January 1, 2012, the total of the debit column is:
3. After recording the January 1, 2012 transactions, on January 1, 2012, the
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