The trial balance of Kaplan Printing at December 31, 2014, appears below. The data needed for the month-end adjustments follow the trial balance. KAPLAN PRINTING Unadjusted Trial Balance December 31, 2014 Cash $ 5,400 Accounts receivable 18,600 Prepaid rent 4,500 Supplies 1,200 Furniture and equipment 19,200 Accumulated amortization—furniture and equipment $ 5,760 Accounts payable 3,400 Salaries payable 0 Unearned printing revenue 2,400 S. Kaplan, capital 23,140 S. Kaplan, withdrawals 6,000 Printing revenue 36,500 Salaries expense 12,500 Rent expense 0 Amortization expense—furniture and equipment 0 Advertising expense 3,600 Supplies expense 0 Miscellaneous expense 200 Total $71,200 $71,200 Adjustment data: Unearned printing revenue still remaining to be earned at December 31, $800. Prepaid rent still available at December 31, $2,000. Supplies used during the month, $450. Amortization for the month, $660. Accrued miscellaneous expense at December 31, $200. (Credit Accounts Payable.) Accrued salaries expense at December 31, $1,975. Required Open T-accounts for the accounts listed in the trial balance, inserting their December 31 unadjusted balances. Journalize the adjusting entries on December 31, and post them to the T-accounts. Identify the journal entries and posted amounts by their letter. Prepare the adjusted trial balance. How will the company use the adjusted trial balance?
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
KAPLAN PRINTING
Unadjusted Trial Balance
December 31, 2014
Cash $ 5,400
Prepaid rent 4,500
Supplies 1,200
Furniture and equipment 19,200
Accumulated amortization—furniture and equipment $ 5,760
Accounts payable 3,400
Salaries payable 0
Unearned printing revenue 2,400
S. Kaplan, capital 23,140
S. Kaplan, withdrawals 6,000
Printing revenue 36,500
Salaries expense 12,500
Rent expense 0
Amortization expense—furniture and equipment 0
Advertising expense 3,600
Supplies expense 0
Miscellaneous expense 200
Total $71,200 $71,200
Adjustment data:
Unearned printing revenue still remaining to be earned at December 31, $800.
Prepaid rent still available at December 31, $2,000.
Supplies used during the month, $450.
Amortization for the month, $660.
Accrued miscellaneous expense at December 31, $200. (Credit Accounts Payable.)
Accrued salaries expense at December 31, $1,975.
Required
Open T-accounts for the accounts listed in the trial balance, inserting their December 31 unadjusted balances.
Journalize the
Prepare the adjusted trial balance.
How will the company use the adjusted trial balance?
Step by step
Solved in 4 steps
