[The following information appl Carmen Camry operates a consulting firm called Help Today, which began operations on December 1. On Decem' the company's records show the following selected accounts and amounts for the month of December. Cash Accounts receivable Office supplies office equipment Land Accounts payable Common stock $25, 350 Dividends 22,340 Consulting revenue 5, 230 Rent expense 19,980 Salaries expense 43, 990 Telephone expense 10, 660 Miscellaneous expenses $ 5,980 26,980 9,530 5,590 850 500 101, 700 cise 2-25 (Algo) Preparing an income statement LO P1 he above information to prepare a December income statement for the business.
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.
![Required information
Use the following information for Exercises 25-27 below. (Algo)
[The following information applies to the questions displayed below.]
Carmen Camry operates a consulting firm called Help Today, which began operations on December 1. On Decembe
the company's records show the following selected accounts and amounts for the month of December.
Cash
$ 25, 350 Dividends
22,340 Consulting revenue
5, 230
19,980
43,990 Telephone expense
10,660 Miscellaneous expenses
$ 5,980
Accounts receivable
Office supplies
office equipment
26,980
Rent expense
Salaries expense
9,530
5,590
850
Land
Accounts payable
500
Common stock
101, 700
ercise 2-25 (Algo) Preparing an Income statement LO P1
e the above information to prepare a December income statement for the business.
HELP TODAY
Income Statement](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F97b5df25-1667-438a-b46e-c2a0d1ae7c86%2Fe0179d6d-64ac-4dc1-8249-9275dce2bf2f%2Fc56qotpg_processed.jpeg&w=3840&q=75)
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