Required Information [The following information applies to the questions displayed below.] Stark company has the following adjusted accounts and normal balances at Its December 31 year-end. Notes payable Prepaid insurance Interest expense Accounts payable Wages payable Cash Wages expense Insurance expense Stark, Capital Services revenue $ 12,000 Accumulated depreciation-Buildings 2,600 Accounts receivable 520 Utilities expense 2,000 Interest payable 500 Unearned revenue 12,000 Supplies expense 7,600 Buildings 1,900 Stark, Withdrawals Income Statement 30,800 Depreciation expense-Buildings 25,000 Supplies Complete this question by entering your answers in the tabs below. Statement of Owners Equity Use the adjusted accounts for Stark Company to prepare the (1) Income statement and (2) statement of owner's equity for the year ended December 31 and (3) balance sheet at December 31. The Stark, Capital account balance was $30,800 on December 31 of the prior year, and there were no owner Investments in the current year. $ 16,000 4,200 1,400 Balance Sheet 140 850 220 50,000 3,500 2,500 850
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
[The following information applies to the questions displayed below.]
Stark company has the following adjusted accounts and normal balances at Its December 31 year-end.
Notes payable
Prepaid insurance
Interest expense
Accounts payable
Wages payable
Cash
Wages expense
Insurance expense
Stark, Capital
Services revenue
$ 12,000 Accumulated depreciation-Buildings
2,600 Accounts receivable
520 Utilities expense
2,000 Interest payable
500 Unearned revenue
12,000 Supplies expense
7,600 Buildings
1,900 Stark, Withdrawals
Expenses
30,800 Depreciation expense-Buildings
25,000 Supplies
Complete this question by entering your answers in the tabs below.
Total expenses
Use the adjusted accounts for Stark Company to prepare the (1) Income statement and (2) statement of owner's equity for the year
ended December 31 and (3) balance sheet at December 31. The Stark, Capital account balance was $30,800 on December 31 of the
prior year, and there were no owner Investments in the current year.
Income
Statement of
Statement Owners Equity
Prepare the income statement for the year ended December 31.
Balance Sheet
STARK COMPANY
Income Statement
For Year Ended December 31
$ 16,000
4,200
1,400
< Income Statement
140
850
220
50,000
3,500
2,500
850
Statement of Owners Equity >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f10230f-de28-4b13-be4f-040d677e1c39%2F9067ca2f-955f-4855-9177-d2988e6de220%2Fyp0x47o_processed.png&w=3840&q=75)
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