The following information was provided for Rose company. The purpose of presenting these account balances is for you to prepare a statement of financial position as of December 31, 2018. Use the report form in your presentation and provide a supporting schedule or notes to financial statements. Explain also the importance of presenting this statement of financial position and the usefulness of these to users of financial statements. Accounts Receivable 600,000 Unearned rent income 60,000 Advances to officers-not currently collectible 150,000 Retained Earnings (Deficit) (2,700,000) Sinking Fund 600,000 Share premium-preference 750,000 Building 7,500,000 Premium on bonds payable 1,500,000 Long-term refundable deposit 75,000 Preference share capital 3,000,000 Cash and cash equivalents 750,000 Share premium – ordinary 300,000 Cash surrender value 90,000 Notes payable 450,000 Equipment 1,500,000 SSS payable 15,000 Lease Rights 150,000 Accounts payable 600,000 Accrued interest on Notes Receivable 15,000 Accrued salaries 150,000 Inventories 1,950,000 Accumulate depreciation-building 3,000,000 Land 2,250,000 Accumulated depreciation-equipment 300,000 Land Held for speculation 750,000 Allowance for doubtful accounts 30,000 Notes Receivable 375,000 Bonds payable 7,500,000 Computer Software 4,875,000 Dividends payable 180,000 Prepaid Expenses 105,000 Ordinary share capital 7,500,000 Trading Securities 420,000 Withholding tax payable 45,000 Preference share redemption fund 525,000
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 information was provided for Rose company. The purpose of presenting
these account balances is for you to prepare a statement of financial position as of December 31, 2018. Use the report form in your presentation and provide a supporting schedule or notes to financial statements. Explain also the importance of presenting this statement of financial position and the usefulness of these to users of financial statements.
Unearned rent income 60,000
Advances to officers-not currently collectible 150,000
Sinking Fund 600,000
Share premium-preference 750,000
Building 7,500,000
Premium on bonds payable 1,500,000
Long-term refundable deposit 75,000
Cash and cash equivalents 750,000
Share premium – ordinary 300,000
Cash surrender value 90,000
Notes payable 450,000
Equipment 1,500,000
SSS payable 15,000
Lease Rights 150,000
Accounts payable 600,000
Accrued interest on Notes Receivable 15,000
Accrued salaries 150,000
Inventories 1,950,000
Accumulate
Land 2,250,000
Land Held for speculation 750,000
Allowance for doubtful accounts 30,000
Notes Receivable 375,000
Bonds payable 7,500,000
Computer Software 4,875,000
Dividends payable 180,000
Prepaid Expenses 105,000
Ordinary share capital 7,500,000
Trading Securities 420,000
Withholding tax payable 45,000
Preference share redemption fund 525,000
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
