Reconstruct adjusting and closing entries for the month ended September 30 from the following T accounts: Prepaid Insurance Accounts Receivable Unearned Revenue Wages Payable 1,350 1,250 1,050 385 130 275 235 385 1,220 1,525 815 Diane Lin, Capital Diane Lin, Drawing Fees Earned 7,000 2,400 5,000 580 2,400 275 2,400 0 235 4,020 5,510 0 Wages Expense Rent Expense Insurance Expense Utilities Expense 3,600 1,880 130 95 385 1,880 130 95 3,985 0 0 0 0 If an amount box does not require an entry, leave it blank. Adjusting Entries: (a) fill in the blank b25c57079043037_2 fill in the blank b25c57079043037_3 fill in the blank b25c57079043037_5 fill in the blank b25c57079043037_6 (b) fill in the blank b25c57079043037_8 fill in the blank b25c57079043037_9 fill in the blank b25c57079043037_11 fill in the blank b25c57079043037_12 (c) fill in the blank b25c57079043037_14 fill in the blank b25c57079043037_15 fill in the blank b25c57079043037_17 fill in the blank b25c57079043037_18 (d) fill in the blank b25c57079043037_20 fill in the blank b25c57079043037_21 fill in the blank b25c57079043037_23 fill in the blank b25c57079043037_24 Closing entries: (a) fill in the blank 7be7e0fa6fc205f_2 fill in the blank 7be7e0fa6fc205f_3 fill in the blank 7be7e0fa6fc205f_5 fill in the blank 7be7e0fa6fc205f_6 fill in the blank 7be7e0fa6fc205f_8 fill in the blank 7be7e0fa6fc205f_9 fill in the blank 7be7e0fa6fc205f_11 fill in the blank 7be7e0fa6fc205f_12 fill in the blank 7be7e0fa6fc205f_14 fill in the blank 7be7e0fa6fc205f_15 fill in the blank 7be7e0fa6fc205f_17 fill in the blank 7be7e0fa6fc205f_18 (b) fill in the blank 7be7e0fa6fc205f_20 fill in the blank 7be7e0fa6fc205f_21 fill in the blank 7be7e0fa6fc205f_23 fill in the blank 7be7e0fa6fc205f_24
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.
Reconstruct adjusting and closing entries for the month ended September 30 from the following T accounts:
| Prepaid Insurance | Unearned Revenue | Wages Payable | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1,350 | 1,250 | 1,050 | 385 | |||||||
| 130 | 275 | 235 | 385 | |||||||
| 1,220 | 1,525 | 815 | ||||||||
| Diane Lin, Capital | Diane Lin, Drawing | Fees Earned | |||||
|---|---|---|---|---|---|---|---|
| 7,000 | 2,400 | 5,000 | |||||
| 580 | 2,400 | 275 | |||||
| 2,400 | 0 | 235 | |||||
| 4,020 | 5,510 | 0 |
| Wages Expense | Rent Expense | Insurance Expense | Utilities Expense | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 3,600 | 1,880 | 130 | 95 | |||||||
| 385 | 1,880 | 130 | 95 | |||||||
| 3,985 | 0 | 0 | 0 | |||||||
| 0 |
If an amount box does not require an entry, leave it blank.
| (a) | fill in the blank b25c57079043037_2 | fill in the blank b25c57079043037_3 | |
| fill in the blank b25c57079043037_5 | fill in the blank b25c57079043037_6 | ||
| (b) | fill in the blank b25c57079043037_8 | fill in the blank b25c57079043037_9 | |
| fill in the blank b25c57079043037_11 | fill in the blank b25c57079043037_12 | ||
| (c) | fill in the blank b25c57079043037_14 | fill in the blank b25c57079043037_15 | |
| fill in the blank b25c57079043037_17 | fill in the blank b25c57079043037_18 | ||
| (d) | fill in the blank b25c57079043037_20 | fill in the blank b25c57079043037_21 | |
| fill in the blank b25c57079043037_23 | fill in the blank b25c57079043037_24 |
Closing entries:
| (a) | fill in the blank 7be7e0fa6fc205f_2 | fill in the blank 7be7e0fa6fc205f_3 | |
| fill in the blank 7be7e0fa6fc205f_5 | fill in the blank 7be7e0fa6fc205f_6 | ||
| fill in the blank 7be7e0fa6fc205f_8 | fill in the blank 7be7e0fa6fc205f_9 | ||
| fill in the blank 7be7e0fa6fc205f_11 | fill in the blank 7be7e0fa6fc205f_12 | ||
| fill in the blank 7be7e0fa6fc205f_14 | fill in the blank 7be7e0fa6fc205f_15 | ||
| fill in the blank 7be7e0fa6fc205f_17 | fill in the blank 7be7e0fa6fc205f_18 | ||
| (b) | fill in the blank 7be7e0fa6fc205f_20 | fill in the blank 7be7e0fa6fc205f_21 | |
| fill in the blank 7be7e0fa6fc205f_23 | fill in the blank 7be7e0fa6fc205f_24 |
Adjustment entries are passed to account for any accrued expenses or income once unadjusted trial balance is prepared. closing entries are passed to close temporary accounts ( related to revenue and expenses) and to transfer the difference to capital account which is a permanent account.
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