Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Stark company has the following adjusted accounts with normal balances at its December 31 year-end. $ 29,000 $ 25,000 Accumulated depreciation Buildings 3,900 Accounts receivable 780 Utilities expense 6,800 2,700 660 8,500 Interest payable 1,800 Unearned revenue 38,000 Supplies expense 8,900 Buildings Notes payable Prepaid insurance Interest expense Accounts payable Wages payable Cash Wages expense Insurance expense Common stock Services revenue 3,200 Dividends 24,000 Depreciation expense-Buildings 90,000 Supplies Retained earnings Exercise 3-16 (Algo) Preparing an adjusted trial balance LO P5 1,500 480 180,000 10,000 9,000 1,500 84,800
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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Required information
Use the following information for the Exercises below. (Algo)
[The following information applies to the questions displayed below.]
Stark company has the following adjusted accounts with normal balances at its December 31 year-end.
$ 25,000 Accumulated depreciation-Buildings
3,900 Accounts receivable
780 Utilities expense
8,500 Interest payable
1,800 Unearned revenue
38,000 Supplies expense
8,900 Buildings
Notes payable
Prepaid insurance
Interest expense
Accounts payable
Wages payable
Cash
Wages expense
Insurance expense
Common stock
Services revenue
3,200 Dividends
24,000 Depreciation expense-Buildings
90,000 Supplies
Retained earnings
Exercise 3-16 (Algo) Preparing an adjusted trial balance LO P5
$ 29,000
6,800
2,700
660
1,500
480
180,000
10,000
9,000
1,500
84,800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fce5734b5-c08e-48f2-bb6b-f244db03de64%2F36f87cb2-5d66-42b1-ab23-88a53f50c26d%2Fwdrkuxj_processed.jpeg&w=3840&q=75)
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