Stark company has the following adjusted accounts and normal balances at its December 31 year-end. $ 27,000 Accumulated depreciation-Buildings 4,100 Accounts receivable 820 Utilities expense 9,500 Interest payable 2,000 Unearned revenue 42,000 Supplies expense Notes payable Prepaid insurance Interest expense Accounts payable Wages payable Cash Wages expense Insurance expense Stark, Capital Services revenue. 9,100 Buildings 3,400 Stark, Withdrawals 120,800 Depreciation expense-Buildings 100,000 Supplies $ 31,000 7,200 2,900 740 1,600 520 200,000 11,000 10,000 1,600 Use the adjusted trial balance accounts and balances at its December 31 year-end for Stark Company to prepare an adjusted 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.
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Stark company has the following adjusted accounts and normal balances at its December 31 year-end.
$ 27,000 Accumulated depreciation-Buildings
4,100 Accounts receivable
820 Utilities expense
9,500 Interest payable
2,000 Unearned revenue
42,000 Supplies expense
9,100 Buildings
3,400 Stark, Withdrawals
Notes payable
Prepaid insurance.
Interest expense
Accounts payable.
Wages payable
Cash
Wages expense
Insurance expense
Stark, Capital
Services revenue
TENN
431 1-1
120,800 Depreciation expense-Buildings
100,000 Supplies
STARK COMPANY
Adjusted Trial Balance
December 31
CHUNGEN
H
Debit
14166-7-
UN
Credit
$ 31,000
7,200
2,900
740
Use the adjusted trial balance accounts and balances at its December 31 year-end for Stark Company to prepare an adjusted trial
balance.
1,600
520
200,000
11,000
10,000
1,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2726b86c-9401-4962-91ce-c5e401005271%2F16dc22d6-94c0-40f6-a141-5c65243abdaf%2F4wqubr_processed.jpeg&w=3840&q=75)
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