Required information Skip to question [The following information applies to the questions displayed below.] Powell Company began the Year 2 accounting period with $19,200 cash, $60,500 inventory, $48,200 common stock, and $31,500 retained earnings. During Year 2, Powell experienced the following events: Sold merchandise that cost $36,600 for $75,200 on account to Prentise Furniture Store. Delivered the goods to Prentise under terms FOB destination. Freight costs were $330 cash. Received returned goods from Prentise. The goods cost Powell $1,940 and were sold to Prentise for $3,930. Granted Prentise a $1,150 allowance for damaged goods that Prentise agreed to keep. Collected partial payment of $53,200 cash from accounts receivable. Required b. Post the beginning balances and journal entries to the T-accounts b Prepare income statement c Prepare multistep income statement d Prepare balance sheet ePrepare the Statement of cash flow
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
Skip to question
[The following information applies to the questions displayed below.]
Powell Company began the Year 2 accounting period with $19,200 cash, $60,500 inventory, $48,200 common stock, and $31,500
- Sold merchandise that cost $36,600 for $75,200 on account to Prentise Furniture Store.
- Delivered the goods to Prentise under terms FOB destination. Freight costs were $330 cash.
- Received returned goods from Prentise. The goods cost Powell $1,940 and were sold to Prentise for $3,930.
- Granted Prentise a $1,150 allowance for damaged goods that Prentise agreed to keep.
- Collected partial payment of $53,200 cash from
accounts receivable .
Required
b. Post the beginning balances and
b Prepare income statement
c Prepare multistep income statement
d Prepare
ePrepare the Statement of
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