tance December 31 count Title sh fice supplies epaid insurance uipment cumulated depreciation-Equipment Ecounts payable ages payable ommon stock etained earnings ividends ervices revenue epreciation expense-Equipment lages expense Insurance expense Rent expense Office supplies expense Utilities expense Debit $ 14,0 1,36 2,05 50,00 16,000 5,000 37,500 800 10,600 3,600 2,700 $ 143,550 Totals ained Earnings account balance was $23,000 on December 31 of t are an income statement for the year. are a statement of retained earnings for the year. are a classified balance sheet at December 31.
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.
![The adjusted trial balance of Karise Repairs on December 31 follows.
KARISE REPAIRS
Adjusted Trial Balance
December 31
Number
Account Title
Cash
Office supplies
Prepaid insurance
Equipment
Accumulated depreciation-Equipment
Accounts payable
Wages payable
Common stock
Retained earnings
Dividends
Services revenue
Depreciation expense-Equipment
Wages expense
Insurance expense
Rent expense
Office supplies expense
Utilities expense
Debit
Credit
101
124
128
167
168
201
210
307
318
$ 14,000
1,300
2,050
50,000
ped
$ 5,000
14,000
600
10,000
23,000
Вook
319
403
612
623
637
640
16,000
Print
90,950
5,000
37,500
800
10,600
3,600
2,700
$ 143,550 $ 143,550
References
650
690
Totals
Note: Retained Earnings account balance was $23,000 on December 31 of the prior year.
Required:
1a. Prepare an income statement for the year.
1b. Prepare a statement of retained earnings for the year.
1c. Prepare a classified balance sheet at December 31.
2. Prepare the December 31 closing entries.
Complete this question by entering your answers in the tabs below,
Renuired 1A
Required 1B
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![IC. Prepare a Classiied balance sneet at December 31.
2. Prepare the December 31 closing entries.
Complete this question by entering your answers in the tabs below.
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Required 1B
Required 1C
Required 2
Prepare an income statement for the year.
KARISE REPAIRS
Income Statement
For Year Ended December 31
Revenues:
nt
Expenses:
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0.
Total expenses
Requirad 1A
Required 1B
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