The Signage Company Trial Balances March 31, 2019 Unadjusted Adjusted Debit Balances Balances Credit Debit Balances Balances Credit Cash 4,750 17,400 6,200 9,000 100,000 170,000 4,750 17,400 2,175 1,150 100,000 170,000 Accounts Receivable. Supplies Prepaid Insurance Land Buildings Accumulated Depreciation-Buildings.. 61,000 51,500 Trucks 75,000 75,000 Accumulated Depreciation-Trucks Accounts Payable. Salaries Payable. Unearned Service Fees.. Mary Bakken, Capital Mary Bakken, Drawing Service Fees Earned Salary Expense. ... Depreciation Expense-Trucks Rent Expense. Supplies Expense. Utilities Expense Depreciation Expense-Buildings Taxes Expense Insurance Expense Miscellaneous Expense 12,000 6,920 17,000 8,750 1,400 3,850 256,400 10,500 256,400 7,500 7,500 162,680 169,330 81,400 5,000 11,900 4,025 8,030 9,500 2,900 7,850 9,150 S17,730 517730 80,000 11,900 6,200 2,900 9,150 500,000 500,000 Instructions Journalize the seven entries that adjusted the accounts at March 31. None of the accounts were affected by more than one adjusting entry.
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 Signage Company specializes in the maintenance and repair of signs, such as billboards. On March 31, 2019, the accountant for The Signage Company prepared the
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