On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $82,650 in assets to launch the business. On December 31, the company's records show the following items and amounts. $ 15,200 Cash withdrawals by owner 12,410 Consulting revenue 1,770 Rent expense 46,080 Salaries expense 16,450 Telephone expense 6,060 Miscellaneous expenses 82,650 Cash Accounts receivable Office supplies Land Office equipment Accounts payable Owner investments the above information to prepare a December 31 balance et for Ernst Consulting.
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.
![nformation
'g information applies to the questions
low.]
er 1, Jasmin Ernst organized Ernst Consulting.
er 3, the owner contributed $82,650 in assets to
usiness. On December 31, the company's
v the following items and amounts.
$ 15,200
12,410 Consulting revenue
1,770 Rent expense
46,080 Salaries expense
16,450 Telephone expense
6,060 Miscellaneous expenses
82,650
Cash withdrawals by owner
$ 460
12,410
2,140
5,300
eceivable
plies
ipment
ayable
750
560
stments
nformation to prepare a December 31 balance
Consulting.
ERNST CONSULTING
Balance Sheet
$
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32a2307b-f282-43f6-b044-9077c1b666f8%2F5660fde0-d3b8-434a-ad2f-076402571135%2Fhkqphp_processed.jpeg&w=3840&q=75)
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Required information
[The following information applies to the questions
displayed below.]
On December 1, Jasmin Ernst organized Ernst Consulting.
On December 3, the owner contributed $82,650 in assets to
launch the business. On December 31, the company's
records show the following items and amounts.
$ 15,200
12,410 Consulting revenue
1,770 Rent expense
46,080 Salaries expense
16,450 Telephone expense
6,060 Miscellaneous expenses
82,650
Cash
Cash withdrawals by owner
Accounts receivable
Office supplies
Land
Office equipment
Accounts payable
Owner investments
Use the above information to prepare a December 31 balance
sheet for Ernst Consulting.
ERNST CONSULTING
Balance Sheet
$
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32a2307b-f282-43f6-b044-9077c1b666f8%2F5660fde0-d3b8-434a-ad2f-076402571135%2F4hqlrl9_processed.jpeg&w=3840&q=75)
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