(Learning Objective 5: Construct and use a trial balance) The accounts of Specialty Deck Service, Inc., follow with their normal balances at April 30, 2018. The accounts arelisted in no particular order.Account BalanceDividends..........................Utilities expense ................Accounts receivable...........Delivery expense ...............$ 3,1002,3005,300700Retained earnings.............. 7,800Salary expense................... 8,400AccountCommon stock..................Accounts payable ..............Service revenue..................Equipment.........................Note payable.....................Cash..................................Balance$ 16,2004,30020,50030,80021,00019,200Requirements1. Prepare the company’s trial balance at April 30, 2018, listing accounts in proper sequence,as illustrated in the chapter. For example, Accounts Receivable comes before Equipment.List the expense with the largest balance first, the expense with the next largest balancesecond, and so on.2. Prepare the financial statement for the month ended April 30, 2018, which will show thecompany the results of operations for the month.
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.
(Learning Objective 5: Construct and use a
listed in no particular order.
Account Balance
Dividends..........................
Utilities expense ................
Delivery expense ...............
$ 3,100
2,300
5,300
700
Retained earnings.............. 7,800
Salary expense................... 8,400
Account
Common stock..................
Accounts payable ..............
Service revenue..................
Equipment.........................
Note payable.....................
Cash..................................
Balance
$ 16,200
4,300
20,500
30,800
21,000
19,200
Requirements
1. Prepare the company’s trial balance at April 30, 2018, listing accounts in proper sequence,
as illustrated in the chapter. For example, Accounts Receivable comes before Equipment.
List the expense with the largest balance first, the expense with the next largest balance
second, and so on.
2. Prepare the financial statement for the month ended April 30, 2018, which will show the
company the results of operations for the month.
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