Prepare the unadjusted trial balance
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 unadjusted
![Presented below, together with account numbers, is the unadjusted trial balance of Madelyn Rubin Travel
Agency for the year ended December 31, 2015:
Madelyn Rubin Travel Agency
Unadjusted Trial Balance
Dec. 31, 2015
126,000
645,000
360,000
63,000
2,175,000
120
130
140
150
155
210
220
230
240
310
320
Cash
Accounts Receivable
Prepaid Rent
Office Supplies
Furniture
Accumulated Depreciation - Furmiture
Accounts Payable
Notes Payable
Salaries Payable
Interest Payable
Rubin, Capital
Rubin, Withdrawals
Travel Revenues
Salaries Expense
Rent Expense
Office Supplies Expense
540
435,000
285,000
900,000
1,680,000
1,200,000
410
5,133,000
$10
3,771,000
520
530
Depreciation Expense- Furniture
Interest Expense
Miscellaneous Expense
Totals
550
93.000
8.433.000
560
8.433.000
Information pertaining Rubin's accounts is as follows:
a Nov. 1, 201S, Rubin paid Juanita Ravena Realtors Php 360,000 for six months' rent on the office
building commencing that date.
Office supplies on hand at Dec. 31, 2015 amounted to Php 27,000.
Depreciation expense for the furmiture amounted to Php 75,000 for the year.
d At Dec. 31.2015, Php 105,000 salaries have accrued.
The Php 900,000 note payable was issued on Oct. 1, 2015. It will be repaid in 12 months together
with the interest at an annual rate of 24%. (Compute the interest payable that have accrued).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e5d65af-83ff-49f6-9a19-89dda0b9dd10%2F41d53299-8d7f-4403-9c97-a0a6213365b0%2Fzfk6a9o_processed.jpeg&w=3840&q=75)
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