the following unadjusted trail balance is prepared at month-end for trey company. trey comapny undjusted trail balance for month ended february 28,2021 account title debit credit cash $ 1500 open inventory $ 800 store supplies $ 50 prepaid insurance $ 350 store equipment $ 24,800 accum.depr-store equipment $4,450 account payable $7200 trey A. capital $15300 trey A with drawals $ 1400 sale $58800 sale discount $600 sale returns & allowance $ 5600 purchases $27000 salaries expense $6500 rent expense $2000 suplies expense $450 insurance exp $350 deprection exp store eq $150 advertising exp $7000 total : $85,750 85,750 other data: closing inventory at year end is rs 6000. required 1.prepare multiple income statement and balance sheet for the month ended on februry 28,2021. 2.prepare closing entries
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 unadjusted trail balance is prepared at month-end for trey company.
trey comapny
undjusted trail balance
for month ended february 28,2021
account title debit credit
cash $ 1500
open inventory $ 800
store supplies $ 50
prepaid insurance $ 350
store equipment $ 24,800
accum.depr-store equipment $4,450
account payable $7200
trey A. capital $15300
trey A with drawals $ 1400
sale $58800
sale discount $600
sale returns & allowance $ 5600
purchases $27000
salaries expense $6500
rent expense $2000
suplies expense $450
insurance exp $350
deprection exp store eq $150
advertising exp $7000
total : $85,750 85,750
other data: closing inventory at year end is rs 6000.
required 1.prepare multiple income statement and
2.prepare closing entries
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