Nolan's Home Appraisals Work Sheet For Month Ended October 31, 20 -- MCIESTMETS KCONT INE DERT CEDIT DEBIT CENT 8 30 00 7 60 00 1 Cash 2 Accounts Receivatle 3 Supples 4 Prepaid Insurance 5 Automobile 1 2 6 25 00 9 50 00 6 500 00 3 4 5 6 Accum. Depr.-Automoble 7 Accounts Payable 8 Wages Payable 9 Val Nolan, Capital 10 Val Nolan, Drawing 150 0 00 8 99 0 0 00 1100 00 10 11 Appraisal Fees 300 0 00 11 12 Wages Expense 13 Advertising Expense 14 Rent Expense 15 Supples Expense 16 Phone Expense 15 60 00 4 20 00 1050 00 12 13 14 15 255 00 16 17 Insurance Expense 17 18 Repair Expense 19 Oil and Gas Expense 270 00 8 0 00 18 19 20 Depr. ExpenseAutomobile 20 21 14 4 0 0 00 14 40 0 00 21 6.
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.
ADJUSTMENTS AND WORK SHEET SHOWING A NET LOSS Val Nolan started a business called Nolan’s Home Appraisals. The
Required
1. Analyze the following adjustments and enter them on the work sheet.
(a) Supplies inventory as of October 31, $210.
(b) Unexpired (remaining) insurance as of October 31, $800.
(c)
(d) Wages earned but not paid as of October 31, $175.
2. Complete the work sheet.
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