The following accounts and normal balances existed at year-end. In their proper order, make the four journal entries required to close the books: Accounts Normal Balances Accounts Receivable $46,200 Prepaid Insurance $5,800 Land $12,000 Accounts Payable $29,900 Notes Payable $32,500 Retained Earnings $55,400 Dividends $8,000 Fees Earned Revenue $89,200 Selling Expenses $62,000 Administrative Expenses $29,500 Miscellaneous Expenses $4,140 Partial Closing Journal Entry (CJE) #1: Debit or credit ( Select ) V Income Summary for (Select ] Partial Closing Journal Entry (CJE) #2: Debit or credit ( Select ] Income Summary for (Select ] Partial Closing Journal Entry (CJE) #3: Debit or credit ( Select ) V Retained Earnings for (Select ] Partial Closing Journal Entry (CJE) #4: Debit or credit ( Select ] V Retained Earnings for ( Select ]
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 following accounts and normal balances existed at year-end. In their proper order, make the four journal entries required to close the books:
Accounts
Normal Balances
Accounts Receivable
$46,200
Prepaid Insurance
$5,800
Land
$12,000
Accounts Payable
$29,900
Notes Payable
$32,500
Retained Earnings
$55,400
Dividends
$8,000
Fees Earned Revenue
$89,200
Selling Expenses
$62,000
Administrative Expenses
$29,500
Miscellaneous Expenses
$4,140
Partial Closing Journal Entry_(CJE) #1:
Debit or credit [ Select ]
Income Summary for
[ Select ]
Partial Closing Journal Entry (CJE) #2:
Debit or credit [ Select ]
V Income Summary for [ Select ]
Partial Closing Journal Entry (CJE)) #3:
Debit or credit [Select ]
V Retained Earnings for (Select ]
Partial Closing Journal Entry (CJE) #4:
Debit or credit [ Select ]
V Retained Earnings for [ Select ]
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Closing journal entry plays an important in an accounting cycle process under this step total of revenue and expenses are transferred to income summary account and then the net balance of income summary account balance is transfer to retained earnings to close the books for the period.
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