March 31, 2018, the balances of the accounts appearing in the ledger of RoyalFurnishings Company, a furniture wholesaler, are as follows:Accounts Receivable $ 170,000Accumulated Depreciation—Building 750,000Administrative Expenses 435,000Building 3,500,000Cash 80,000Common Stock 300,000Cost of Goods Sold 5,500,000Dividends 175,000Interest Expense 15,000Inventory $ 980,000Notes Payable 250,000Office Supplies 20,000Retained Earnings 1,987,000Salaries Payable 8,000Sales 8,245,000Selling Expenses 575,000ore Supplies 90,000A. Prepare a multiple-step income statement for the year ended March 31, 2018.B. Compare the major advantages and disadvantages of the multiple-step and single
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.
March 31, 2018, the balances of the accounts appearing in the ledger of Royal
Furnishings Company, a furniture wholesaler, are as follows:
Accounts Receivable $ 170,000
Accumulated
Administrative Expenses 435,000
Building 3,500,000
Cash 80,000
Common Stock 300,000
Cost of Goods Sold 5,500,000
Dividends 175,000
Interest Expense 15,000
Inventory $ 980,000
Notes Payable 250,000
Office Supplies 20,000
Retained Earnings 1,987,000
Salaries Payable 8,000
Sales 8,245,000
Selling Expenses 575,000
ore Supplies 90,000
A. Prepare a multiple-step income statement for the year ended March 31, 2018.
B. Compare the major advantages and disadvantages of the multiple-step and single
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