Prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank. Palisade Creek Co. Adjusted Trial Balance May 31, 2019 Debit Balances Credit Balances Cash Accounts Receivable Merchandise Inventory Estimated Returns Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated Depreciation-Store Equipment Accounts Payable Customer Refunds Payable Salaries Payable Lynn Tolley, Capital Lynn Tolley, Drawing Sales Cost of Merchandise Sold Sales Salaries Expense Advertising Expense Depreciation Expense Store Supplies Expense Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Administrative Expense Unadjusted Trial Balance Adjustments Adjusted Trial Balance Balance Sheet Income Statement Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit $ 84,500 $ 245,875 $ 570,000 Cash 2$ 84,500 $ 245,875 $ 583,950 84,500 Accounts Receivable 245,875 Merchandise Inventory Estimated Returns Inventory Prepaid Insurance Store Supplies Store Equipment Accum Depr-Store equipment Accounts payable Custromer Refunds Payable Salaries Payable Lynn trolley - capital Lynn trolley - drawing 2$ 13,950 $ 570,000 2$ 15,200 $ 35,000 50,200 50,200 16,800 2$ 12,000 | $ 4,800 4,800 2$ 13,800 $ 569,500 9,800 $ 4,000 4,000 2$ 569,500 $ 569,500 2$ 56,700 14,000 70,700 2$ 70,700 2$ 2$ 63,150 63,150 63,150 $ 89,270 $ 13,600 $ 685,300 29,270 60,000 2$ 89,270 13,600 13,600 685,300 2$ 685,300 $ 135,000 135,000 $ 135,000 Sales 5,376,205 $ 60,000 $5,316,205 $ 5,316,205 Cost of Merchandise Sold Sales Salaries Expense $ 13,950 $ $3,013,000 $ 720,800 $ 292,000 35,000 $ 2,991,950 2,991,950 $ 7,000 727,800 727,800 Advertising expense Depreciation Expense Store supplies expense Miscellaneous selling expense $ loffice Salaries expense 292,000 292,000 $ 14,000 $ 9,800 14,000 14,000 9,800 12,600 9,800 12,600 12,600 $ 411,100 $ 6,600 417,700 417,700 Rent Expense Insurance expense 2$ 88,700 88,700 88,700 $ 12,000 12,000 12,000 Miscellaneous admin expense 7,800 7,800 7,800 $6,210,625 | $ 6,238,225 $6,238,225 $ 4,574,350 $ 5,316,205 $ 741,855 Total 6,210,625 $158,350 $ 158,350 | $ Net income $ 741,855 Total $1,663,875 $ 1,663,875
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.
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