Problem 1-20 (AICPA Adapted) Marr Company sells products with reusable containers. The customer is charged a de container delivered and receives a refund for returned within two years after the year of c Containers held by customers on January deliveries in: 2020 2021 Containers delivered in 2022 Containers returned in 2022 from deliveries 2020 2021 2022 a. 494,000 b. 584,000 150,000 430,000 What amount should be reported as liability deposits on December 31, 2022? c. 674,000 d. 734,000 90,000 250,000 286,000 Problem 1-21 (IAA) Diversified Company sells perishable electr- that are shipped in reusable containers. Customer for each container. The deposit is equal to the container cost. Custo refund when the container is returned. During the current year, deposits collected shipped amounted to P700,000. Deposits a containers are not returned in 18 months. Containers held by customers at the beginnin totaled P330,000. During the current year, an amount of P410,000 and deposits of P25,000 were forfeited. a. 595,000 b. 620,000 c. 645,000 d. 290,000 What amount should be reported as liability deposit at year-end?
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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