The data needed to determine year-end adjustments are as follows: a. Unexpired insurance at October 31, $6,130. b. Supplies on hand at October 31, $615. c. Depreciation of building for the year, $7,610. d. Depreciation of equipment for the year, $4,300. e. Unearned rent at October 31, $1,490. 1. Accrued salaries and wages at October 31, $3,040. g. Fees eared but unbilled on October 31, 510.865 Required: 1. Journalize the adjusting entries using the following additional accounts* Salaries and Wages Payable, Rent Revenue, Insurance Expense, Depreciation Expense_-Building, Depreciation Expense Equipment and Supplies Expense. Refer to the chart of accounts for the exact wording of the account titles. NOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. NOW journals will automatically indent a credit entry when a credit amount is entered. 2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance.
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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erson Company is a small editorial services company owned and operated by Suzanne Emerson. On October 31, 20Y6, Emerson Company's accounting clerk prepared the following unadjusted trial balance:
Emerson Company
Chart of Accounts
UNADJUSTED TRIAL BALANCE
CHART OF ACCOUNTS
October 31, 20Y6
Emerson Company
ACCOUNT TITLE
DEBIT
CREDIT
General Ledger
Cash
7.420.00
2Acounts Receivable
38.115.00
ASSETS
REVENUE
sPrepaid Insurance
7.050.00
11 Cash
41 Fees Earned
Supplies
1.630.00
12 Accounts Receivable
42 Rent Revenue
SLand
114.550.00
13 Prepaid Insurance
14 Supplies
EXPENSES
Building
150.250.00
15 Land
51 Salaries and Wages Expense
Accumulated Depcation Building
88,800.00
Eignent
16 Building
52 Utilities Expense
133.200.00
17 Accumulated Depreciation-Building
53 Advertising Expense
Accumlated Depreciation Equipment
96.605.00
18 Equipment
54 Repairs Expense
Accounts Payble
12.560.00
19 Accumulated Depreciation-Equipment
55 Depreciation Expense-Building
Uneamed Ret
7,035.00
56 Depreciation Expense-Equipment
Suae Emenon.Capital
217.215.00
LIABILITIES
57 Insurance Expense
Se Emenon. Drawing
15.055.00
21 Accounts Payable
58 Supplies Expense
Fees Eamed
22 Unearned Rent
59 Miscellaneous Expense
327,900.00
Ss and Wages Expere
194870.00
23 Salaries and Wages Payable
U Expe
42.345.00
AdertExpe
EQUITY
22.355.00
epn Ee
31 Suzanne Emerson, Capital
17690.00
32 Suzanne Emerson, Drawing
M Expe
5.605.00
750,115.00
750.115.00
The data neded
1 to determine year end adjustments are as follows
Unped isurance at October 31. 56.130
Bups on hand a October 31, 5615
D on f dng for the year 7610
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 alt="Adjusted Trial Balance
2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance
Journal
Emerson Company
1. Journalize the adjusting entries using the following additional accounts Salaries and Wages Payable, Rent Revenue, Insurancce Expense, Deoreciation ExpenseBuilding
ADJUSTED TRIAL BALANCE
Depreciation Expense-Equpment and Supplies Expense Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for journal
October 31, 20Y6
explanations Every line on a journal page is used for debit or credit entries CNOW journmals will automatically indent a credit entry when a credit amount is entered
ACCOUNT TITLE
DEBIT
CREDIT
1 Cash
PAGE 10
2 Accounts Receivable
JOURNAL
ACCOUNTING EQUATION
3 Prepaid Insurance
DATE
DESCRIPTION
DEBIT
CREDIT
POST. RE
ASSETS
LIABILITIES
EQUITY
Supplies
Adjusting Entries
5 Land
Building
7Accumulated Depreciation-Building
14
Equipment
Accumulated Depreciation Equipment
Accounts Payable
1 Unearned Rent
12 Salaries and Wages Payable
3 Suzanne Emerson, Capital
20
14 Suzanne Emerson, Drawing
13 Fees Earned
12
16 Rent Revenue
15
7Salaries and Wages Expense
1 Utilities Expense
Advertising Expense
20 Repairs Expense
21 Depreciation Expense-Building
2 Depreciation Expense-Equipment
23 Insurance Expense
24 Supplies Expense
as Miscellaneous Expense
26 Totals
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