The adjusted trial balance for Chiara Company Cash Accounts receivable Interest receivable Notes receivable (due in 90 days) Office supplies Automobiles Accumulated depreciation-Automobiles Equipment Accumulated depreciation-Equipment ne Land 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 Required A Required B of December 31 follows. Required C Debit $ 173,500 51,000 19, 200 172,000 16,500 168,000 142,000 85,000 CHIARA COMPANY Balance Sheet December 31 Assets 27,500 21,000 188,000 41,000 34,000 35,600 57,500 27,000 $ 1,312,800 Prepare Chiara Company's balance sheet as of December 31. 54,000 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 $315,800, and there were no owner investments in the current year.]; and (c) the balance sheet as of December 31. Complete this question by entering your answers in the tabs below. $ $ 0 0 0 Credit 0 $ 95,000 22,000 92,000 45,000 17,000 32,000 146,000 315,800 0 524,000 24,000 $ 1,312,800
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 for Chiara Company as of December 31 follows.
Debit
$ 173,500
51,000
19, 200
172,000
16,500
168,000
142,000
85,000
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
Required A Required B
Required C
54,000
27,500
21,000
188,000
41,000
Prepare Chiara Company's balance sheet as of December 31.
CHIARA COMPANY
Balance Sheet
December 31
Assets
$
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 $315,800,
and there were no owner investments in the current year.]; and (c) the balance sheet as of December 31.
$
34,000
35,600
57,500
27,000
$ 1,312,800 $ 1,312,800
Complete this question by entering your answers in the tabs below.
0
0
Credit
0
$ 95,000
22,000
92,000
45,000
17,000
32,000
146,000
315,800
0
524,000
24,000
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