Required information Use the following information for the Exercises below. (Static) [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. $ 15,000 $ 11,000 Accumulated depreciation-Buildings 2,500 Accounts receivable 500 Utilities expense 4,000 1,300 100 800 200 Notes payable Prepaid insurance Interest expense Accounts payable Wages payable Cash Wages expense Insurance expense Common stock Services revenue 1,500 Interest payable 400 Unearned revenue 10,000 Supplies expense 7,500 Buildings 1,800 Dividends 10,000 Depreciation expense-Buildings 20,000 Supplies Retained earnings 40,000 3,000 2,000 800 14,800
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.
![!
Required information
Use the following information for the Exercises below. (Static)
[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.
$ 11,000 Accumulated depreciation-Buildings
2,500 Accounts receivable
500 Utilities expense
1,500 Interest payable
400 Unearned revenue
Notes payable
Prepaid insurance
Interest expense
Accounts payable
Wages payable
Cash
Wages expense
Insurance expense
Common stock
Services revenue
10,000 Supplies expense
7,500 Buildings
1,800 Dividends
10,000 Depreciation expense-Buildings
20,000
Supplies
Retained earnings
$ 15,000
4,000
1,300
100
800
200
40,000
3,000
2,000
800
14,800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff5b32e68-8d32-4a83-88be-ddb6c2b4627d%2F9c8fe898-1ff8-4b82-91b5-8fabb327bea2%2F5x5uv3v_processed.png&w=3840&q=75)
Income statement is prepared by the business entities so as to know how much amount of profit they earned during the year. Profit or net income earned by the entities is computed by deducting all the expenses from the sales revenue. Income statement helps in analyzing the efficiency of the management in managing the business activities.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
