Required information [The following information applies to the questions displayed below.] The following trial balance was drawn from the records of Havel Company as of October 1, year 2. Cash Accounts receivable Inventory Store equipment Accumulated depreciation Accounts payable Line of credit loan Common stock Retained earnings Totals Cash Budget for October Beginning cash balance Add: Cash receipts Cash available Less: Payments $ 16,000 60,000 40,000 200,000 . Indicate whether Havel will need to borrow money during October by preparing October's Cash Budget. (Negative amounts sh e indicated by a minus sign.) For inventory purchases For S&A expenses Payments minus receipts Total budgeted payments 100,000 50,000 17,200 $316,000 $316,000 $ 76,800 72,000 Answer is not complete. $ 16,000 16,000 O
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.
Please do not give solution in image format thanku
![Required information
[The following information applies to the questions displayed below.]
The following trial balance was drawn from the records of Havel Company as of October 1, year 2.
Cash
Accounts receivable
Inventory
Store equipment
Accumulated depreciation
Accounts payable
Line of credit loan
Common stock
Retained earnings
Totals
Cash Budget for October
Beginning cash balance
Add: Cash receipts
Cash available
Less: Payments
For inventory purchases
For S&A expenses
Payments minus receipts
$ 16,000
60,000
40,000
200,000
c. Indicate whether Havel will need to borrow money during October by preparing October's Cash Budget. (Negative amounts should
be indicated by a minus sign.)
$316,000
Total budgeted payments
Cash surplus (shortage)
Will Havel need to borrow money during October?
x Answer is not complete.
✓
$ 76,800
72,000
100,000
50,000
17,200
$316,000
$
16,000✔✓
16,000
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbe5dee22-cf52-49a9-a045-9b6fb9afe878%2F5304c426-7af9-4ee0-a7af-4b3b60a66c2b%2Fewun5id_processed.png&w=3840&q=75)
Step by step
Solved in 3 steps
