The adjusted trial balance for Chiara Company as of December 31 follows. Debit $206,700 56,000 20,400 168,500 16,500 168,000 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. R. Chiara, Capital R. Chiara, Withdrawals 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 138,000 86,000 46,000 24,500 22,000 187,000 41,000 32,600 35,000 62,000 28,600 $ 1,338,800 Credit $ 90,000 21,000 105,000 25,000 20,000 30,000 152,000 285,800 574,000 36,000 $1,338,800 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 owner's equity for the year ended December 31 [Note: R. Chiara, Capital at December 31 of the prior year was $285,800, and there were no owner investments in the current year]; 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.
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Required A Required B
Required C
Prepare the statement of owner's equity for the year ended December 31. [Note: R. Chiara, Capital at December 31 of the
prior year was $285,800, and there were no owner investments in the current year.]
CHIARA COMPANY
Statement of Owner's Equity
For Year Ended December 31
R. Chiara, Capital, December 31 prior year
Add Investments by owner
R Chiara, Capital, December 31 current year
< Required A
Required C >
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Required A Required B Required
Prepare Chiara Company's balance sheet as of December 31.
CHIARA COMPANY
Balance Sheet
December 31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F67eeef0b-e6a8-43af-a851-bbb71fd1c3af%2Fad093115-2688-4f87-b640-40b08ea57601%2Fbah7nr9_processed.jpeg&w=3840&q=75)
![The adjusted trial balance for Chiara Company as of December 31 follows.
Debit
$206,700
56,000
20,400
168,500
16,500
168,000
138,000
Cash
Accounts receivable.
Interest receivable
Notes receivable (due in 90 days)
office supplies
Automobiles
Accumulated depreciation-Automobile's
Equipment
Accumulated depreciation-Equipment
Land
Accounts payable
Interest payable
Salaries payable
Unearned revenue
Long-term notes payable.
R. Chiara, Capital
R. Chiara, Withdrawals
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
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
86,000
Prepare the income statement for the year ended December 31.
CHIARA COMPANY
Income Statement
For Year Ended December 31
46,000
24,500
22,000
187,000
41,000
32,600
35,000
62,000
28,600
$ 1,338,800
Credit
$ 90,000
21,000
105,000
25,000
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 owner's equity for the year ended December 31 [Note: R. Chiara, Capital at December 31 of the prior year was $285,800,
and there were no owner investments in the current year]; and (c) the balance sheet as of December 31.
20,000
30,000
152,000
285,800
574,000
36,000
$1,338,800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F67eeef0b-e6a8-43af-a851-bbb71fd1c3af%2Fad093115-2688-4f87-b640-40b08ea57601%2Fgrh6dka_processed.jpeg&w=3840&q=75)
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