Prepare the following: Adjusting entries – December 31,2015 Working papers
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 the following: | ||
Working papers |
![Additional information that were found helpful to your analysis are as follows:
Beginning balance (agrees with your working papers last year)
1. BARTOLMS , COMMON - 5,000 shares P 11,000
2. RICH, INC., COMMON - 900 shares 19,000
3. YLEVOL Corp., COMMON - 15,000 shares 45,000
Commission were recorded as expense
Details of BERTOLDS Bonds:
1. Face value P 1,000 per bond
2. Interest rate 12%
3. Interest dates May 1 and November 1
Required:
Prepare the following:
Adjusting entries - December 31,2015
Working papers](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa0985e78-bb33-4f25-a951-77f93215ba3c%2F6e299035-7223-4ee2-b06c-d8b4fb01d366%2F4uvtnygk_processed.png&w=3840&q=75)
![You are engaged to audit the marketable securities of BATCH215 Company. In your inquiries, the accountant
presented to you the account of investments.
Date
Particulars
Debit
Credit
2015
1-Jan
Beginning balance
75,000
Purchased 2,000 shares of GRAZE common at P100 per share P2,000 for
15-Mar
commission
200,000
Sold 50 shares of BARTOLMS Co. at P10 per share, less P15 for
10-Apr
commission
500
30-Jun
Received 50% stock dividend from BART Co.
4,950
15-Jul
Received 50% stock dividend from RICH, Inc.
5,400
31-Jul
Sold 100 shares of Rich, Inc. at P30 each, P30 commission
3,000
Purchased 10 BERTOLDS Bonds at 110, plus interest accrued to date;
1-Oct
commission amounted to P110
11,500
15-Nov
Proceeds from sale of 200 shares of GRAZE; no commission involved
26,000
Proceeds from sale of 4 bonds at 105, including interest to date;
1-Dec
commission involved amounted to P42
4,240
30-Dec
Sold 50 shares of BARTOLMS at P20 per share, no commission involved
1,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa0985e78-bb33-4f25-a951-77f93215ba3c%2F6e299035-7223-4ee2-b06c-d8b4fb01d366%2Fog0g5_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)