Required: Use the information in the adjusted trial balance to prepare (a) the income statement for the year ended December 31; (b) the statement of retained earnings for the year ended December 31 [Note: Retained Earnings at December 31 of the prior year was $302,220.); and (c) the balance sheet as of December 31. Complete this question by entering your answers in the tabs below. Required Required Required A B с Prepare the statement of retained earnings for the year ended December 31. [Note: Retained Earnings at December 31 of the prior year was $302,220.] CHIARA COMPANY Statement of Retained Earnings For Year Ended December 31 Retained earnings, December 31 prior year end Retained earnings, December 31 current year end
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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![Cash
Accounts receivable
Interest receivable
Notes receivable (due in 90
days)
Office supplies
Automobiles
Accumulated depreciation-
Automobiles
Equipment
Accumulated depreciation-
Equipment
Land
Accounts payable
Interest payable
Salaries payable
Unearned revenue
Long-term notes payable
Common stock
Retained earnings
Dividends
Services revenue
Interest revenue
Depreciation expense-
Automobiles
Depreciation expense-Equipment
Salaries expense
Wages expense
Interest expense
Office supplies expense
Advertising expense
Repairs expense-Automobiles
Totals
Required Required Required
A
B
с
Debit
$ 217,700
55,500
22,600
169,500
16,000
166,000
CHIARA COMPANY
Statement of Retained Earnings
For Year Ended December 31
138,000
Retained earnings, December 31 prior
year end
Retained earnings, December 31
current year end
77,000
55,000
27,500
21,000
186,000
40,000
33,200
33,800
59,000
26,000
$
Credit
$ 60,000
< Required A
17,000
90,000
40,000
25,000
32,000
Required:
Use the information in the adjusted trial balance to prepare (a) the income statement for the year ended December 31;
(b) the statement of retained earnings for the year ended December 31 [Note: Retained Earnings at December 31 of the
prior year was $302,220.]; and (c) the balance sheet as of December 31.
148,000
33,580
302, 220
Complete this question by entering your answers in the tabs below.
574,000
22,000
$
1,343,800 1,343,800
Prepare the statement of retained earnings for the year ended December 31. [Note:
Retained Earnings at December 31 of the prior year was $302,220.]
Required C >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F92158a1c-f518-4fa6-afba-3d5c7dd18f84%2Fbdf9a531-f81a-4474-beec-538e47c03617%2Fmkuxhxl_processed.png&w=3840&q=75)
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