[The following information applies to the questions displayed below] The following adjusted trial balance at December 31 of Wilson Trucking Company. Credit Account Title Cash Accounts receivable office supplies Trucks Accumulated depreciation-Trucks Land Accounts payable Interest payable Long-term notes payable Connon stock Retained earnings Dividends Trucking revenue Depreciation expense-Trucks Salaries expense office supplies expense. Interest expense Totals Debit $8,000 17,500 3,000 172,000 85,000 20,000 23,500 61,000 0,000 12,000 $410,000 $ 36,000 12,000 4,000 50,000 30,000 140,000 130,000 $410,000 Prepare the closing entries for the year ended December 31. The Retained Earnings account balance was $140,000 at December 31 of the prior year.
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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![[The following information applies to the questions displayed below.]
The following adjusted trial balance at December 31 of Wilson Trucking Company.
Credit
Account Title
Cash,
Accounts receivable
office supplies
Trucks
Accumulated depreciation-Trucks
Land
Accounts payable
Interest payable
Long-term notes payable
Common stock
Retained earnings
Dividends
Trucking revenue
Depreciation expense-Trucks
Salaries expense
office supplies expense
Interest expense
Totals
View transaction list
Journal entry worksheet
2
3
Debit
$ 8,000
17,500
3,000
172,000
85,000
Prepare the closing entries for the year ended December 31. The Retained Earnings account balance was $140.000 at December 31 of
the prior year.
4
20,000
23,500
61,000
0,000
12,000
$410,000
$ 36,000
12,000
4,000
50,000
30,000
140,000
130,000
$410,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5880093c-ff2c-4534-be77-b60ca023c98c%2F68a907b0-0e5a-4c80-a90a-7dfcdee253a3%2F0gsprb8_processed.jpeg&w=3840&q=75)
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