The adjusted trial balance of Heritage Book Store and Supply Company as of November 30, 20X1, after the firm's first month of operations, appears below. Appropriate adjustments have been made for the following items: a. Supplies used during the month, $11,600. b. Expired rent for the month, $14,000. c. Depreciation expense for the month, $3,800. HERITAGE BOOK STORE AND SUPPLY COMPANY Adjusted Trial Balance November 30, 20X1 Account Name Cash Accounts receivable Supplies Prepaid rent Equipment Accumulated depreciation-Equipment Accounts payable Frank Ross, Capital Frank Ross, Drawing Fees income Depreciation expense-Equipment Rent expense Salaries expense Supplies expense Utilities expense Totals Req 2 and 3 Debit $ 92,300 15,248 18,400 84,000 110,000 16,000 3,800 14,000 34,000 11,600 2,000 $ 401,348 Credit Analyze $ 3,800 36,000 167,348 194, 200 Required: 2. Record the adjusting entries in the Adjustments columns. 3. Complete the Trial Balance columns of the worksheet prior to making the adjusting entries. $ 401,348 Analyze: What was the balance of Prepaid Rent prior to the adjusting entry for expired rent? Complete this question by entering your answers in the tabs below.
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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