ng the Accounting Cycle Instructions a. Prepare the closing entries that were made. b. Post the closing entries to Income Summary. E4.12 (LO 3) Blair Natt Company discovered the following errors made in January 2020. 1. A payment of Salaries and Wages Expense of $700 was debited to Equipment and credited to Casn, both for $700. 2. A collection of $1,500 from a client on account was debited to Cash $150 and credited to Service Revenue $150. 3. The purchase of equipment on account for $670 was debited to Equipment $760 and credited to Accounts Payable $760. Instructions a. Correct the errors by reversing the incorrect entry and preparing the correct entry. b. Correct the errors without reversing the incorrect entry. E4.13 (LO 3) Patel Company has an inexperienced accountant. During the first 2 weeks on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made. 1. A payment on account of $750 to a creditor was debited to Accounts Payable $570 and credited to Cash $570. on account for $560 was debited to Equipment $56 and credited to Accounts 2. The purchase of supplies Payable $56. 3. A $500 withdrawal of cash for N. Patel's personal use was debited to Salaries and Wages Expense $500 and credited to Cash $500. Instructions Prepare the correcting entries. E4.14 (LO 4) Writing Financial Statement The adjusted trial balance for Carter Bowling Alley Credit December 31, 2020, contains the following accounts. Debit Owner's Capital Accumulated Depreciation-Buildings $113,000 42,600 12,300 97.7 $128,800 14,520 Accounts Payable Notes Payable Buildings rounts Receivable 4,680
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.
Please answer E4.12 #1-3. Where it says instructions and then instructions for parts a and b. Only part a needs to be done for E4.12 1-3, so part b can be ignored. Thanks.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
