The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company. Advertising expense $ 27,500 Direct labor $ 671,800 Depreciation expense—Office equipment 11,800 Income taxes expense 285,700 Depreciation expense—Selling equipment 10,900 Indirect labor 59,300 Depreciation expense—Factory equipment 33,500 Miscellaneous production costs 11,300 Factory supervision 140,300 Office salaries expense 66,000 Factory supplies used 8,300 Raw materials purchases 965,000 Factory utilities 34,000 Rent expense—Office space 28,000 Inventories Rent expense—Selling space 26,400 Raw materials, December 31, 2018 153,900 Rent expense—Factory building 82,600 Raw materials, December 31, 2019 180,000 Maintenance expense—Factory equipment 39,900 Work in process, December 31, 2018 19,300 Sales 4,626,600 Work in process, December 31, 2019 23,400 Sales salaries expense 397,400 Finished goods, December 31, 2018 168,100 Finished goods, December 31, 2019 142,800 LEONE COMPANY Schedule of Cost of Goods Manufactured For Year Ended December 31, 2019 Direct materials Raw materials available for use Direct materials used Factory overhead Total factory overhead costs Total manufacturing costs Total cost of work in process Cost of goods manufactured
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 calendar year-end information is taken from the December 31, 2019, adjusted
| Advertising expense | $ | 27,500 | Direct labor | $ | 671,800 | ||
| 11,800 | Income taxes expense | 285,700 | |||||
| Depreciation expense—Selling equipment | 10,900 | Indirect labor | 59,300 | ||||
| Depreciation expense—Factory equipment | 33,500 | Miscellaneous production costs | 11,300 | ||||
| Factory supervision | 140,300 | Office salaries expense | 66,000 | ||||
| Factory supplies used | 8,300 | Raw materials purchases | 965,000 | ||||
| Factory utilities | 34,000 | Rent expense—Office space | 28,000 | ||||
| Inventories | Rent expense—Selling space | 26,400 | |||||
| Raw materials, December 31, 2018 | 153,900 | Rent expense—Factory building | 82,600 | ||||
| Raw materials, December 31, 2019 | 180,000 | Maintenance expense—Factory equipment | 39,900 | ||||
| Work in process, December 31, 2018 | 19,300 | Sales | 4,626,600 | ||||
| Work in process, December 31, 2019 | 23,400 | Sales salaries expense | 397,400 | ||||
| Finished goods, December 31, 2018 | 168,100 | ||||||
| Finished goods, December 31, 2019 | 142,800 | ||||||
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