Prepare A Post Closing Trail Balance And Balance Sheet.
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.
Prepare A Post Closing Trail Balance And
![INCEK COMPANY ADJUSTED TRIAL BALANCE - December 31, 2022
ACCOUNTS
100-Cash on Hand
101- Checks Received
102-Cash in Bank
120-Accounts Receivable
153- Merchandise
191- V.A.T. Deductible
252- Buildings
255- Furniture & Fixtures
257- Accumulated Deprec.
321- Notes Payable
360- Taxes & Funds Payable
361- Social Security Payable
391- V.A.T. Collected
500-Capital
570- Previous Years' Profits
600- Sales
621- Cost of Merchan. Sold
631- Mrktg., Sel., Ad. Expen.
632-Gen. & Adm. Expenses
660- Shrt-Term Borrow. Exp.
689- Other Extraord. Losses
760- Mrkt, Sell. & Dist. Costs
761- Mkt, Sll. & D.C. Applied
770- General & Adm. Costs
771- Gen. & Adm. C. Applied
780- Financial Costs
781-Financial Costs Applied
TOTALS
AMOUNTS
Debit
70,800
67,000
142,600 142,600
132,600
150,000
180,000
14,400
250,000
50,000
80,000
49,000
23,400
100,000
6,000
25,000
2,000
5,000
6,000
10,000
Credit
2,000
60,000
100,000
14,400
15,000
196,400
50,000
2,000
23,400
400,000
80,000
130,000
-
6,000
TWEED
10,000
2,000
1,298,800 1,298,800
MacBook Air
BALANCES
Debit
3,800
132,600
90,000
80,000
*****
250,000
50,000
100,000
6,000
25,000
2,000
5,000
6,000
10,000
131
2,000
***
762,400
Credit
15,000
116,400
1,000
2,000
400,000
80,000
130,000
6,000
10,000
2,000
762,400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F58649d5e-7852-4c24-90a0-549be2f112a3%2F94397e44-0b4c-42b6-a140-1a81026027d0%2Ffdb1y1g_processed.jpeg&w=3840&q=75)
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