justed Trial July 31, 202
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.
Use the
![Stant Company
Unadjusted Trial Balance
July 31, 2020
Cash
$7,500
Accounts Receivable
38,400
Prepaid insurance
7,200
Supplies
1,980
Land
112,500
Building
Accumulated depreciation – Building
200,250
$137,550
Equipment
Accumulated depreciation - Equipment
Accounts payable
Salaries and wages payable
135,300
97,950
12,150
Unearned rent
6,750
Tracy Stant, Capital
Tracy Stant, Drawing
221,000
15,000
Fees earned
324,600
Salaries and wages expense
193,370
Utilities expense
42,375
Insurance expense
Supplies expense
Depreciation expense
Advertising expense
22,800
Repairs expense
Miscellaneous expense
17,250
6,075
$800,000
$800,000
Uce thic trial balanca to iournaliza the following adiuuctina entries](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2e320421-d8ac-4065-a3f1-d328936a391f%2Fa4d908cf-f2ba-46f0-bffb-362294a94a37%2Fedaq92b_processed.jpeg&w=3840&q=75)
![Fees earned but unbilled on July 31, $12,740.
DATE
Debit
Credit
7/31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2e320421-d8ac-4065-a3f1-d328936a391f%2Fa4d908cf-f2ba-46f0-bffb-362294a94a37%2F93p1g8r_processed.jpeg&w=3840&q=75)
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