Prepare journal entries on the books of Tamarisk Company to record these transactions. (Credit account titles are automatically indented vhen amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
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.
![Below are transactions related to Tamarisk Company.
a.
b.
C.
The City of Pebble Beach gives the company 5 acres of land as a plant site. The fair value of this land is determined to be
$78,560.
13,000 shares of common stock with a par value of $50 per share are issued in exchange for land and buildings. The property
has been appraised at a fair value of $785,600, of which $186,030 has been allocated to land and $599,570 to buildings. The
stock of Tamarisk Company is not listed on any exchange, but a block of 100 shares was sold by a stockholder 12 months ago
at $69 per share, and a block of 200 shares was sold by another stockholder 18 months ago at $61 per share.
No entry has been made to remove from the accounts for Materials, Direct Labor, and Overhead the amounts properly
chargeable to plant asset accounts for machinery constructed during the year. The following information is given relative to
costs of the machinery constructed.
Materials used
Factory supplies used
Direct labor incurred
Additional overhead (over regular) caused by construction of machinery, excluding factory supplies used
Fixed overhead rate applied to regular manufacturing operations
Cost of similar machinery if it had been purchased from outside suppliers
$13,240
867
15,940
2,677
60% of direct labor
cost
46,610
Prepare journal entries on the books of Tamarisk Company to record these transactions. (Credit account titles are automatically indented
when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List
all debit entries before credit entries.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fccad594d-36c5-47bd-8471-29fb38434fa6%2F74c56189-301e-4fce-83f3-d84efdb4a5b4%2Fe7cv39r_processed.png&w=3840&q=75)
![No. Account Titles and Explanation
a.
b.
C.
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fccad594d-36c5-47bd-8471-29fb38434fa6%2F74c56189-301e-4fce-83f3-d84efdb4a5b4%2Fmn7e0g_processed.png&w=3840&q=75)
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