NEED ANSWER ASAP At the end of the 2021 year, the accounting staff at Prestige Design Flooring Inc. (PDF) have the following unadjusted trial balance as at December 31, 2021. Cash 6,700 Accounts Receivable 24,327 Supplies 4,231 Prepaid Insurance 5,700 Equipment 896,000 Accumulated Depreciation (Equipment) 112,600 Other Assets 64,225 Accounts Payable 14,327 Unearned Service Revenue 16,600 Note Payable (due 2026) 80,000 Common Shares 289,540 Retained Earnings, 12/31/2020 38,454 Service Revenue 802,427 Wages Expense 131,650 Rent Expense 218,415 Interest Expense 2,700 Total $1,353,948 $1,353,948 The accounting staff have identified the following items where a year end accrual entry may be required. a. PDF purchased 12-month insurance on July 1, 2021. It is reported as prepaid insurance in the trial balance above. b. A physical inventory count showed that $690 of office supplies is on hand at year end. c. PDF’s equipment depreciation was $31,980 for the 2021 year. d. An analysis showed the unearned service revenue above had been reduced to $12,420 after additional service was provided to customers prior to the end of year. e. Wages in the amount of $3,800 were owed to employees but were unpaid and unrecorded at year-end. f. Six months' interest at 6% on the note was paid on August 31. Interest for the period from September 1 to December 31 has not been paid or recorded. (2) Prepare an adjusted trial balance for PDF Inc. Add any additional accounts that may be required. PDF Inc. Adjusted Trial Balance (3) From the Adjusted Trial Balance that you have prepared for PDF Inc. use this information to prepare the following 3 Financial Statements. A. Please prepare a statement of earnings for PDF Inc. for the year ended December 31, 2021. B. Please prepare a statement of retained earnings for PDF Inc. at December 31, 2021. C. Please prepare a statement of financial position for PDF Inc. as at December 31, 2021
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.
NEED ANSWER ASAP
At the end of the 2021 year, the accounting staff at Prestige Design Flooring Inc. (PDF) have the following
unadjusted
Cash 6,700
Supplies 4,231
Prepaid Insurance 5,700
Equipment 896,000
Other Assets 64,225
Accounts Payable 14,327
Unearned Service Revenue 16,600
Note Payable (due 2026) 80,000
Common Shares 289,540
Service Revenue 802,427
Wages Expense 131,650
Rent Expense 218,415
Interest Expense 2,700
Total $1,353,948 $1,353,948
The accounting staff have identified the following items where a year end accrual entry may be required.
a. PDF purchased 12-month insurance on July 1, 2021. It is reported as prepaid insurance in the trial balance
above.
b. A physical inventory count showed that $690 of office supplies is on hand at year end.
c. PDF’s equipment depreciation was $31,980 for the 2021 year.
d. An analysis showed the unearned service revenue above had been reduced to $12,420 after additional
service was provided to customers prior to the end of year.
e. Wages in the amount of $3,800 were owed to employees but were unpaid and unrecorded at year-end.
f. Six months' interest at 6% on the note was paid on August 31. Interest for the period from September 1 to
December 31 has not been paid or recorded.
(2) Prepare an adjusted trial balance for PDF Inc. Add any additional accounts that may be required.
PDF Inc.
Adjusted Trial Balance
(3) From the Adjusted Trial Balance that you have prepared for PDF Inc. use this information to prepare the
following 3 Financial Statements.
A. Please prepare a statement of earnings for PDF Inc. for the year ended December 31, 2021.
B. Please prepare a statement of retained earnings for PDF Inc. at December 31, 2021.
C. Please prepare a
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