Show the closing entries and post-close trial balance
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.
Show the closing entries and post-close
![Your Name, Inc.
Your Name, Inc.
Post Close Trial Balance
Adjusted Trial Balance
2020 Entries and
Adjustments
Debits Credits
277,200 259,100
1,000
194,000
7,500
198,000
15,500
31-Dec-19
31-Dec-20
DEBITS CREDITS
17.000
2,000
14,000
DEBITS CREDITS
35,100
1,000
150,000
Cash
Marketable Securities
Accounts Rec.
330,000
4,000
180.000
18,000
Allowance for Bad Debt
2,000
5,500
3,000
15,000
5,000
30,000
150,000
Inventory
Prepaid Insurance
7.500
30,000
150,000
Land
Building
Accumulated Dep. - Building
Equipment
Accumulated Dep. - Equipment
Accounts Payable
Salaries Payable
45,000
5,000
50,000
100,000
20,000
120,000
20,000
9,000
23,000
180,000
1,100
43,000
12,000
1,100
177,000
Unearned Revenue
2,000
2,000
Interest Payable
Income Taxes Payable
Note Payable
1,120
9,136
56,000
1,120
9,136
56,000
100,000
60,000
100,000
22,000
3,000
3,000
100,000
50,000
80,000
22,000
333,000
Bonds
Common Stock
Additional Pd-in-Capital
Retained Earnings
10,000
20,000
333,000
Additional Accounts:
Sales
Cost of Goods Sold
Bad Debt Expense
Depreciation Expense - Equipment
Depreciation Exp. - Build.
Salaries Expense
Gain
330,000
330,000
198,000
7,500
23,000
5,000
26,400
198,000
7.500
23,000
5,000
26,400
200
200
Interest Expense
Bond Interest Expense
Insurance Expense
Treasury Stock
Dividends
1,120
10,000
15,500
2,800
3,000
1,120
10,000
15,500
2,800
3,000
Revenue
2,000
2,000
Income Tax Expense
9,136
1,312,656 1,312,656 795,056 795,056
9,136](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F88b8c7dc-256e-4986-a2e5-e7714f1b410b%2Fb06c9c51-faf5-4609-b327-c47838fe379d%2Fag3mxgi_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 3 steps with 3 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
![College Accounting, Chapters 1-27 (New in Account…](https://www.bartleby.com/isbn_cover_images/9781305666160/9781305666160_smallCoverImage.gif)
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
![College Accounting, Chapters 1-27 (New in Account…](https://www.bartleby.com/isbn_cover_images/9781305666160/9781305666160_smallCoverImage.gif)
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)