Required information E3-13 (Algo) Recording and Posting Accrual Basis Journal Entries, and Preparing an Unadjusted Trial Balance and Preliminary Financial Statements [LO 3-2, 3-3, LO 3-4] [The following information applies to the questions displayed below.] Ricky's Piano Rebuilding Company has been operating for one year. On January 1, at the start of its second year, its income statement accounts had zero balances and its balance sheet account balances were as follows: Cash Accounts Receivable Supplies Equipment Land Buildings $ 8,150 Accounts Payable 22,250 Deferred Revenue (deposits) 3,000 8,700 Common Stock 8,850 Retained Earnings 29,900 E3-13 (Algo) Part 4 Following are the January transactions: a. Received a $665 deposit from a custo who wanted her pia rebuilt February. b. Rented a part of the building to a bicycle repair shop; $685 rent received for January. c. Delivered five rebuilt pianos to customers who paid $18,675 in cash. Notes Payable (long- term) d. Delivered two rebuilt pianos to customers for $9,600 charged on account. e. Received $8,000 from customers as payment on their accounts. f. Received an electric and gas utility bill for $395 for January services to be paid in February. g. Ordered $1,255 in supplies. Total h. Paid $2,600 on account in January. i. Paid $12,200 in wages to employees in January for work done this month. j. Received and paid cash for the supplies in (g). 4. Prepare an unadjusted trial balance at January 31. Account Name RICKY'S PIANO REBUILDING COMPANY Unadjusted Trial Balance Debit $ 12, 200 4,050 Credit 45,000 14,000 5,600 0 $ 0
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.
![Required information
E3-13 (Algo) Recording and Posting Accrual Basis Journal Entries, and Preparing an Unadjusted Trial
Balance and Preliminary Financial Statements [LO 3-2, 3-3, LO 3-4]
[The following information applies to the questions displayed below.]
Ricky's Piano Rebuilding Company has been operating for one year. On January 1, at the start of its second
year, its income statement accounts had zero balances and its balance sheet account balances were as
follows:
Cash
Accounts
Receivable
Supplies
Equipment
Land
Buildings
$ 8,150 Accounts Payable
22,250
Deferred Revenue
(deposits)
3,000
8,700 Common Stock
8,850 Retained Earnings
29,900
E3-13 (Algo) Part 4
Following are the January transactions:
a. Received a $665 deposit from a customer who wanted her piano rebuilt in February.
b. Rented a part of the building to a bicycle repair shop; $685 rent received for January.
c. Delivered five rebuilt pianos to customers who paid $18,675 in cash.
d. Delivered two rebuilt pianos to customers for $9,600 charged on account.
e. Received $8,000 from customers as payment on their accounts.
f. Received an electric and gas utility bill for $395 for January services to be paid in February.
g. Ordered $1,255 in supplies.
h. Paid $2,600 on account in January.
Total
Notes Payable (long-
term)
i. Paid $12,200 in wages to employees in January for work done this month.
j. Received and paid cash for the supplies in (g).
4. Prepare an unadjusted trial balance at January 31.
Account Name
RICKY'S PIANO REBUILDING COMPANY
Unadjusted Trial Balance
$
Debit
$
12, 200
4,050
Credit
45,000
14,000
5,600
0 $
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