The following selected accounts and their current balances appear in the ledger Multiple-step ino me statement and balane me 100 Clairemont Co. for the fiscal year ended May 31, 2018: Cash $ 240,000 Retained Earnings $ 2,949,100 Accounts Receivable Inventory Estimated Returns Inventory Office Supplies Prepaid Insurance Office Equipment Accumulated Depreciation- Office Equipment Store Equipment Accumulated Depreciation- Store Equipment Accounts Payable 966,000 1,690,000 Sales Dividends 100,000 11,343,000 22,500 Cost of Goods Sold 7,850,000 13,500 8,000 830,000 Sales Salaries Expense Advertising Expense Depreciation Expense- Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense 916,000 550,000 140,000 550,000 38,000 3,600,000 650,000 94,000 1,820,000 Depreciation Expense- Office Equipment Insurance Expense Office Supplies Expense Miscellaneous Administrative Exp. Interest Expense 326,000 40,000 50,000 Customer Refunds Payable Salaries Payable Note Payable (final payment due 2024) 48,000 41,500 28,100 14,500 300,000 21,000 Common Stock 500,000 Instructions 1. Prepare a multiple-step income statement. 2. Prepare a retained earnings statement. 3. Prepare a balance sheet, assuming that the current portion of the note payable is $50,000. 4. Briefly explain how multiple-step and single-step income statements differ
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 selected accounts and their current balances appear in the ledger Multiple-step ino me statement and balane me 100 Clairemont Co. for the fiscal year ended May 31, 2018: Cash $ 240,000
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