The adjusted trial balance for Chiara Company as of December 31 follows. Debit Credit $ 30,000 52,000 18,000 168,000 16,000 168,000 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 $ 50,000 138,000 18,000 78,000 96,000 20,000 19,000 30,000 138,000 20,000 235,800 46,000 484,000 24,000 Depreciation expense-Automobiles Depreciation expense-Equipment Salaries expense Wages expense Interest expense Office supplies expense Advertising expense Repairs expense-Automobiles 26,000 18,000 188,000 40,000 32,000 34,000 58,000 24,800 $ 1,134,800 Totals $ 1,134,800 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 $235,800.): and (c) the balance sheet as of 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.
![est expense
ce supplies expense
rtising expense
irs expense-Automobiles
40,000
32,000
34,000
58,000
24,800
$ 1,134,800 $ 1,134,800
red:
me information in the adjusted trial balance to prepare (a) the income statement for the year ended December 31; (b) the
nent of retained earnings for the year ended December 31 (Note: Retained Earnings at December 31 of the prior year was
800.]; and (c) the balance sheet as of December 31.
omplete this question by entering your answers in the tabs below.
equired A
Required B
Required
repare Chiara Company's balance sheet as of December 31.
CHIARA COMPANY
Balance Sheet
December 31
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