Presented below is the trial balance of Muscat Corporation at December 31, 2019 Accounts Debit Credit Cash OMR 197,000 Sales Revenue OMR 8,100,000 Trading securities 153,000 Cost of Goods Sold 5,132,000 Debt Investments (long-term) 299,000 Equity Investments (long-term) 277,000 Notes Payable (short-term) 90,000 Accounts Payable 455,000 Selling Expenses 2,000,000 Investment Revenue 63,000 Land 260,000 Buildings 1,040,000 Dividends Payable 136,000 Accrued Liabilities 96,000 Accounts Receivable 435,000 Accumulated Depreciation—Buildings 352,000 Allowance for Doubtful Accounts 25,000 Administrative Expenses 900,000 Interest Expense 211,000 Raw Materials 97,000 Work In process 250,000 Finished Goods 250,000 Gain (extraordinary) 80,000 Notes Payable (long-term) 900,000 Equipment 600,000 Bonds Payable (Due 2025) 1,000,000 Accumulated Depreciation—Equipment 60,000 Franchises 160,000 Share Capital 1,000,000 Treasury shares 191,000 Patents 195,000 Retained Earnings 210,000 Provision for pensions 80,000 If this information was used to prepare a statement of financial position, Total Non-Current Assets should be:
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.
Presented below is the
|
Accounts |
Debit |
Credit |
|
Cash |
OMR 197,000 |
|
|
Sales Revenue |
|
OMR 8,100,000 |
|
Trading securities |
153,000 |
|
|
Cost of Goods Sold |
5,132,000 |
|
|
Debt Investments (long-term) |
299,000 |
|
|
Equity Investments (long-term) |
277,000 |
|
|
Notes Payable (short-term) |
|
90,000 |
|
Accounts Payable |
|
455,000 |
|
Selling Expenses |
2,000,000 |
|
|
Investment Revenue |
|
63,000 |
|
Land |
260,000 |
|
|
Buildings |
1,040,000 |
|
|
Dividends Payable |
|
136,000 |
|
Accrued Liabilities |
|
96,000 |
|
|
435,000 |
|
|
|
|
352,000 |
|
Allowance for Doubtful Accounts |
|
25,000 |
|
Administrative Expenses |
900,000 |
|
|
Interest Expense |
211,000 |
|
|
Raw Materials |
97,000 |
|
|
Work In process |
250,000 |
|
|
Finished Goods |
250,000 |
|
|
Gain (extraordinary) |
|
80,000 |
|
Notes Payable (long-term) |
|
900,000 |
|
Equipment |
600,000 |
|
|
Bonds Payable (Due 2025) |
|
1,000,000 |
|
Accumulated Depreciation—Equipment |
|
60,000 |
|
Franchises |
160,000 |
|
|
Share Capital |
|
1,000,000 |
|
Treasury shares |
191,000 |
|
|
Patents |
195,000 |
|
|
|
|
210,000 |
|
Provision for pensions |
|
80,000 |
If this information was used to prepare a
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