The trial balance of Concord Corporation contained the following accounts at November 30, the end of the company's fiscal year. Concord adjusts its accounts annually and uses the perpetual inventory system Cash Accounts Receivable Inventory Supplies Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Common Stock Retained Earnings Dividends Sales Revenue Sales Returns and Allowances Cost of Goods Sold Salaries and Wages Expense Salaries and Wages Expense Advertising Expense Utilities Expense Concord Corporation Trial Balance November 30, 2022 Maintenance and Repairs Expense Freight-Out Rent Expense Totals Adjustment data 1. 2 3: 4. Debit $8.200 31,100 43,600 6,000 135,000 11,500 8,600 497,200 139,600 Credit $30,000 55,000 35,200 55,000 40,000 755,600 139,600 24,000 13,900 12,000 16,400 23,700 $970,800 $970,800 Supplies on hand totaled $2,000. Depreciation is $11.500 on the equipment. Interest of $5,000 is accrued on notes payable at November 30. Inventory actually on hand is $42.800
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.
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