The following unadjusted trial balance is for Ace Construction Company at its June 30 current fiscal year-end. The credit balance of the Retained Earnings account was $22,000 on June 30 of the prior year. Number Account Title 101 Cash 126 128 167 Equipment 168 Accumulated depreciation-Equipment 201 Accounts payable 203 Interest payable 623 633 637 640 208 210 213 251 307 318 319 403 612 Deprecia 652 683 Supplies Prepaid insurance 684 690 Rent payable Wages payable ACE CONSTRUCTION COMPANY Unadjusted Trial Balance. June 30 Property taxes payable Long-term notes payable Common stock Retained earnings Dividends Construction revenue expense-Equipment Wages expense Interest expense Insurance expense Adjustments: Rent expense Supplies expense Property taxes expense Repairs expense Utilities expense Totals Debit $ 16,000 10,000 5,500 147,440 27,000 8 45,000 2,860 Credit $ 27,500 5,800 a. Supplies available at the end of the current fiscal year total $3,600. b. Cost of expired insurance for the current fiscal year is $3,465. 0 0 0 0 26,000 53,900 22,000 139,000 10,000 0 4,400 2,600 3,400 $ 274,200 $ 274,200 c. Annual depreciation on equipment is $8,200. d. June utilities expense of $540 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $540 amount owed must be recorded. e. Employees have earned $1,400 of accrued and unpaid wages at fiscal year-end. f. Rent expense incurred and not yet paid or recorded at fiscal year-end is $200. g. Additional property taxes of $900 have been assessed for this fiscal year but have not been paid or recorded at fiscal year-end. h. $260 accrued interest for June has not yet been paid or recorded. 3a. Prepare the income statement for the year ended June 30. 3b. Prepare the statement of retained earnings for the year ended June 30. 3c. Prenare the classified balance sheet at June 30 Required: 1. Prepare a 10-column work sheet for the current fiscal year, starting with the unadjusted trial balance and including adjustments using the above additional information. 2a. Prepare the adjusting entries (all dated June 30). 2b. Prepare the closing entries (all dated June 30).
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.
Confused how to fill in the boxes please help fill them in and give an explanation on why certain numbers go where I'm struggling with this question
aWorksheet -
The worksheet includes unadjusted Trial Balance, Adjustments, and Adjusted Trial Balance. All the transactions and adjustments and after adjusting all the adjustments, adjusted trial balance management can check and verify through this worksheet.
b1. Income Statement
b2. Balance Sheet
The first statement shows the income earned and loss incurred by the organization in the financial year. It gives a summary of the revenue earned during the accounting period and Expenses incurred during the accounting year. It also shows the net profit or loss made by the organization.
The second Statement shows the balance of assets liabilities and Equity as at the balance sheet date. Assets include Current Assets which are short-term in nature. Long Term Assets are long-term in nature. Liabilities are the obligation of the organization which needs to be paid by the company. Equity includes the amount invested in the business.
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