Prepare closing journal entries on December 31. (If no entry is required for a transaction/event, select "No JõUPASI Entry Required" in the first account field.) No 1 Date December 31 Sales Revenue Rent Revenue Utilities Expense Insurance Expense Answer is not complete. Salaries and Wages Expense Depreciation Expense Rent Expense Income Tax Expense Retained Earnings Dividends General Journal ********** ♥ Debit 47,430 360 Credit 22,800 1,900 4,820 2,000 6,600 3,500 1,240 360
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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The Sky Blue Corporation has the following adjusted trial balance at December 31.
Credit
Cash
Accounts Receivable
Prepaid Insurance
Notes Receivable (long-term)
Equipment
Accumulated Depreciation
Accounts Payable
Salaries and Wages Payable
Income Taxes Payable :
Deferred Revenue
Common Stock
Retained Earnings.
Dividends
Sales Revenue
Rent Revenue
Salaries and Wages Expense
Depreciation Expense
Utilities Expense.
Insurance Expense
Rent Expense
Income Tax Expense
Total
Debit
$ 1,290
2,600
2,900
3,600
15,000
360
22,800
1,900
4,820
2,000
6,600
3,500
$ 67,370
$3,800
6,020
1,300
3,500
720
3,000
1,240
47,430
360
$ 67,370](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F35b8eaa4-851c-4a78-8b8b-c59cd6b8a072%2F22883047-483f-4f56-ac94-262a174db62b%2Fj11kup_processed.jpeg&w=3840&q=75)
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