pplies to the questions sted $80,000, $112,000, and partnership. During its first ed $249,000. le firm's Income Summary
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.
![[The following information applies to the questions
displayed below.]
Ries, Bax, and Thomas invested $80,000, $112,000, and
$128,000, respectively, in a partnership. During its first
calendar year, the firm earned $249,000.
Required:
Prepare the entry to close the firm's Income Summary
account as of its December 31 year-end and to allocate the
$249,000 net income under each of the following separate
assumptions.
2. The partners agreed to share income and loss in the ratio of
their beginning capital investments.
Complete this question by entering your answers
Appropriation General
of profits
Journal
Allocate $249,000 net income in the ratio of their begin
(Do not round intermediate calculations.)
Supporting Percentage of Total
Equity
Computations
Ries
Bax
Thomas
<
X
X
X
X
Income
Summary
$
$
$
249,000
249,000
249,000
Allocated Income
to Capital
Appropriation of profits
General Journa](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1cb759a7-d16a-4ef0-8098-341d0c918cfd%2Ff2d40485-f62e-47ef-8e17-c997fda52b1b%2Fl3w2x8k_processed.jpeg&w=3840&q=75)
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