Kendall Jenner started her own company, Kendall Consulting, on April 1, 2021. The trial balance on September 30 is as follows. KENDALL CONSULTING Trial Balance June 30, 2021 Debit Credit Cash $ 6,750 Accounts Receivable 7,000 Supplies 2,000 Prepaid Insurance 2,880 Equipment 15,000 Accounts Payable $ 4,230 Unearned Service Revenue 5,200 Common Stock 22,000 Service Revenue 8,200 Salaries and Wages Expense 4,000 Rent Expense 2,000 $ 39,630 $ 39,630
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.
Kendall Jenner started her own company, Kendall Consulting, on April 1, 2021. The
KENDALL CONSULTING
Trial Balance
June 30, 2021
Debit Credit
Cash $ 6,750
Supplies 2,000
Prepaid Insurance 2,880
Equipment 15,000
Accounts Payable $ 4,230
Unearned Service Revenue 5,200
Common Stock 22,000
Service Revenue 8,200
Salaries and Wages Expense 4,000
Rent Expense 2,000
$ 39,630 $ 39,630
In addition to those accounts listed on the trial balance, the chart of account for Paris Consulting also contains the following accounts:
Other data collected:
1. Supplies on hand by the end of the month total $720
2. A utility bill for $180 has not been recorded and will not be paid until next month.
3. The insurance policy is for a year
4. Services were performed for $4,100 of unearned service revenue by the end of the month
5. Salaries of $1,250 are accrued on June 30
6. The equipment has a 5-year life with no salvage value and is being
7. Invoices representing $3,900 of services performed during the month have not been recorded as of June 30.
Instructions
(1) Prepare the
(2) Prepare an adjusted trial balance at Sept 30, 2021
Step by step
Solved in 3 steps
