Required 1 Required 24 Required 28 Required 3A Required 38 Required 3C Prepare a 10-column work sheet for the current fiscal year, starting with the unadjusted trial balance and including adjustments using the above additional information. ACE CONSTRUCTION COMPANY Work Sheet For Year Ended June 30 Adjustments Number 101 Cash 126 Supplies 128 Prepaid insurance 167 Equipment Account Title 208 210 168 201 Accounts payable 203 Interest payable Rent payable Wages payable Property taxes payable Long-term notes payable V. Ace, Capital V. Ace. Withdrawals 213 251 301 302 403 612 623 633 637 640 Accumulated depreciation-Equipment Construction revenue Depreciation expense-Equipment Wages expense Interest expense Insurance expense Rent expense Unadjusted Trial Balance Debit $ 18.500 7,500 5,500 157.180 28.000 44,000 2,420 10,000 Credit 20.500 6.200 22.000 80,000 146,000 Debit Credit Adjusted Trial Balance Debit Credit Income Statement Debit Credit Balance Sheet and Statement of Owner's Equity Debit Credit
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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