Montalvo Bionics showed the following alphabetized unadjusted trial balance at April 30, 2023 Account Accounts payable Accounts receivable Accumulated depreciation, furniture Accumulated depreciation, machinery Allowance for doubtful accounts Cash Expenses Furniture. Josh Montalvo, capital. Josh Montalvo, withdrawals Machinery Note payable Patent Prepaid rent Revenues Unearned revenue Balance $5,240 18,100 10,270 20,280 1,090 10,900 90,100 23,500 40,430 84,700 52,400 15,400 27,300 18,660 227,000 5.950 Other information: 6. All accounts have normal balances. b. The furniture was depreciated using the straight-line method and had a useful life of five years and residual value of zero. c. The machinery was depreciated using the double-declining-balance method and had a useful life of 10 years and residual value of $28,900 d. The patent was purchased on November 2, 2022, and is expected to be used for 15 years, after which it will have no value e. The balance in Prepaid Rent represents rent from June 1, 2022, to May 31, 2023 f57300 of the note navable will he naid hy Andil 30 2024
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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