The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 20Y9, the end of the fiscal year, the accountant for The Gorman Group prepared an end-of-period spreadsheet, part of which follows: The Gorman Group End-of-Period Spreadsheet For the Year Ended October 31, 20Y9 Adjusted Trial Balance Account Title Dr. Cr. Cash $13,610 Accounts Receivable 29,630 Supplies 4,630 Prepaid Insurance 10,000 Land 105,000 Buildings 379,000 Accumulated Depreciation-Buildings 123,300 Equipment 274,000 Accumulated Depreciation-Equipment 160,700 Accounts Payable 35,050 Salaries Payable 3,470 Unearned Rent 1,570 Common Stock 158,000 Retained Earnings 292,170 Dividends 26,300 Service Fees 499,810 Rent Revenue 5,280 Salaries Expense 358,320 Depreciation Expense-Equipment 19,400 Rent Expense 16,300 Supplies Expense 11,530 Utilities Expense 10,420 Depreciation Expense-Buildings 6,950 Repairs Expense 5,740 Insurance Expense 3,150 Miscellaneous Expense 5,370 1,279,350 1,279,350 1. Prepare an income statement. 2. Prepare a statement of stockholders’ equity. During the year, no additional Common stock was issued. If an amount box does not require an entry, leave it blank. If a Net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. 3. Prepare a balance sheet. 4. Journalize the entries that were required to close the accounts at October 31. If an amount box does not require an entry, leave it blank. 5. If the balance of Retained earnings had instead increased $36,800 after the closing entries were posted, and the dividends remained the same, what would have been the amount of Net income or Net loss? Enter all amounts as positive numbers.
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 Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 20Y9, the end of the fiscal year, the accountant for The Gorman Group prepared an end-of-period spreadsheet, part of which follows:
| The Gorman Group End-of-Period Spreadsheet For the Year Ended October 31, 20Y9 |
||
| Adjusted |
||
| Account Title | Dr. | Cr. |
| Cash | $13,610 | |
| 29,630 | ||
| Supplies | 4,630 | |
| Prepaid Insurance | 10,000 | |
| Land | 105,000 | |
| Buildings | 379,000 | |
| 123,300 | ||
| Equipment | 274,000 | |
| Accumulated Depreciation-Equipment | 160,700 | |
| Accounts Payable | 35,050 | |
| Salaries Payable | 3,470 | |
| Unearned Rent | 1,570 | |
| Common Stock | 158,000 | |
| 292,170 | ||
| Dividends | 26,300 | |
| Service Fees | 499,810 | |
| Rent Revenue | 5,280 | |
| Salaries Expense | 358,320 | |
| Depreciation Expense-Equipment | 19,400 | |
| Rent Expense | 16,300 | |
| Supplies Expense | 11,530 | |
| Utilities Expense | 10,420 | |
| Depreciation Expense-Buildings | 6,950 | |
| Repairs Expense | 5,740 | |
| Insurance Expense | 3,150 | |
| Miscellaneous Expense | 5,370 | |
| 1,279,350 | 1,279,350 |
1. Prepare an income statement.
2. Prepare a statement of
3. Prepare a
4.
5. If the balance of Retained earnings had instead increased $36,800 after the closing entries were posted, and the dividends remained the same, what would have been the amount of Net income or Net loss? Enter all amounts as positive numbers.
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