Liabilities Retained Eamings Account Title Amounts in US $ Cash Other Assets Stock Total Account Title Amount pril, its first month of business, Kamy no Key, Inc.: sued stock to its owners, Louden Cear and Justin Tune, in exchange for cash ssued a 3-month, 6% promissory note to the bank due on June 30 urchased 200 karaoke machines it plans to sell paying cash urchased a display stand on April 1 with a 10-year useful life paying cash old 150 karaoke machines for cash: Record the sale Per Unit Amount Account Title Amount 99,000 99,000 99,000 115,000 115,000 115,000 Notes Payable Inventory Equipment 19,600 (19,600) 19,600 117,600 (117,600) 117,600 137.00 20,550 20,550 Sales Revenue Record the cost of the sale (9,800) Cost of Goods Sold (9,800) (1,610) (1,065) (980) (575) 6,520 Inventory aid its employee cash for services performed in April eclared and paid a cash dividend to its shareholders djusted for depreciation on its equipment with a 10-year useful life and no salvage value djusted for interest owed on loan with 6% interest and principal due on June 30 (1,610) (1,065) Wages Expense Dividends 1,610 1,065 Depreciation Expense Interest Expense 980 (980) Accumulated Depreciation 575 575 Interest Payable Column Total 74,125 146,970 115,575 99,000
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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