The adjusted trial balance for Crane Company is given below: CRANE COMPANYTrial BalanceAugust 31, 2022 BeforeAdjustment AfterAdjustment Dr. Cr. Dr. Cr. Cash $10,000 $10,000 Accounts Receivable 8,000 8,500 Supplies 2,500 1,500 Prepaid Insurance 4,000 2,800 Equipment 15,000 15,000 Accumulated Depreciation—Equipment $3,375 $4,575 Accounts Payable 5,000 5,000 Salaries and Wages Payable 0 1,000 Unearned Rent Revenue 1,800 1,050 Common Stock 11,000 11,000 Retained Earnings 5,000 5,000 Dividends 2,500 2,500 Service Revenue 32,000 32,500 Rent Revenue 12,000 12,750 Salaries and Wages Expense 16,000 17,000 Supplies Expense 0 1,000 Rent Expense 12,175 12,175 Insurance Expense 0 1,200 Depreciation Expense 0 1,200 $70,175 $70,175 $72,875 $72,875 Prepare the income statement for the year ended August 31. CRANE COMPANYIncome Statementchoose the accounting period August 31, 2022 For the Year Ended August 31, 2022 For the Month Ended August 31, 2022 select an opening name for section one Expenses Revenues Total Expenses Total Revenues Net Income / (Loss) Retained Earnings, September 1, 2021 Retained Earnings, August 31, 2022 Dividends enter an income statement item $enter a dollar amount enter an income statement item enter a dollar amount select a closing name for section one Expenses Revenues Total Expenses Total Revenues Net Income / (Loss) Retained Earnings, September 1, 2021 Retained Earnings, August 31, 2022 Dividends $enter a total of the two previous amounts select an opening name for section two Expenses Revenues Total Expenses Total Revenues Net Income / (Loss) Retained Earnings, September 1, 2021 Retained Earnings, August 31, 2022 Dividends enter an income statement item enter a dollar amount enter an income statement item enter a dollar amount enter an income statement item enter a dollar amount enter an income statement item enter a dollar amount enter an income statement item enter a dollar amount select a closing name for section two Expenses Revenues Total Expenses Total Revenues Net Income / (Loss) Retained Earnings, September 1, 2021 Retained Earnings, August 31, 2022 Dividends enter a total for section two select a closing name for this statement Expenses Revenues Total Expenses Total Revenues Net Income / (Loss) Retained Earnings, September 1, 2021 Retained Earnings, August 31, 2022 Dividends $enter a total net income or loss amount
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
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CRANE COMPANY |
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Before |
After |
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|
Dr. |
Cr. |
Dr. |
Cr. |
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|
Cash |
$10,000 |
$10,000 |
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|
|
8,000 |
8,500 |
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|
Supplies |
2,500 |
1,500 |
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|
Prepaid Insurance |
4,000 |
2,800 |
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|
Equipment |
15,000 |
15,000 |
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|
|
$3,375 |
$4,575 |
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|
Accounts Payable |
5,000 |
5,000 |
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|
Salaries and Wages Payable |
0 |
1,000 |
||||||
|
Unearned Rent Revenue |
1,800 |
1,050 |
||||||
|
Common Stock |
11,000 |
11,000 |
||||||
|
|
5,000 |
5,000 |
||||||
|
Dividends |
2,500 |
2,500 |
||||||
|
Service Revenue |
32,000 |
32,500 |
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|
Rent Revenue |
12,000 |
12,750 |
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|
Salaries and Wages Expense |
16,000 |
17,000 |
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|
Supplies Expense |
0 |
1,000 |
||||||
|
Rent Expense |
12,175 |
12,175 |
||||||
|
Insurance Expense |
0 |
1,200 |
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|
Depreciation Expense |
0 |
1,200 |
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|
$70,175 |
$70,175 |
$72,875 |
$72,875 |
Prepare the income statement for the year ended August 31.
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CRANE COMPANY August 31, 2022 For the Year Ended August 31, 2022 For the Month Ended August 31, 2022 |
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select an opening name for section one Expenses Revenues Total Expenses Total Revenues Net Income / (Loss) Retained Earnings, September 1, 2021 Retained Earnings, August 31, 2022 Dividends |
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enter an income statement item |
$enter a dollar amount |
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enter an income statement item |
enter a dollar amount |
||
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select a closing name for section one Expenses Revenues Total Expenses Total Revenues Net Income / (Loss) Retained Earnings, September 1, 2021 Retained Earnings, August 31, 2022 Dividends |
$enter a total of the two previous amounts |
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select an opening name for section two Expenses Revenues Total Expenses Total Revenues Net Income / (Loss) Retained Earnings, September 1, 2021 Retained Earnings, August 31, 2022 Dividends |
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|
enter an income statement item |
enter a dollar amount |
||
|
enter an income statement item |
enter a dollar amount |
||
|
enter an income statement item |
enter a dollar amount |
||
|
enter an income statement item |
enter a dollar amount |
||
|
enter an income statement item |
enter a dollar amount |
||
|
select a closing name for section two Expenses Revenues Total Expenses Total Revenues Net Income / (Loss) Retained Earnings, September 1, 2021 Retained Earnings, August 31, 2022 Dividends |
enter a total for section two |
||
|
select a closing name for this statement Expenses Revenues Total Expenses Total Revenues Net Income / (Loss) Retained Earnings, September 1, 2021 Retained Earnings, August 31, 2022 Dividends |
$enter a total net income or loss amount |
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