These are T accounts Collins Consignment Sales Company Prepare three financials statements The accounts at December 31, 2014.' One year ago, Ralph Collins founded Collins Consignment Sales Company and the business has prospered. Collins Cash Accounts Receivable Prepaid Rent Office Supplies Bal. 5,800 Bal. 12,300 Bal. 2,800 Bal. 2,600 Equipment Accumulated Dep. Equip. Accounts Payable Bal. 52,000 18,500 Bal. Salaries Payable Unearned Revenue Collins Capital , Collins Withdrawals 4,100 Bal. 40,000 Bal, Bal. 50,000 Service Revenue Salaries Expense Dep. Expense-equipment 80,700 Bal. Bal. 17,000 Advertising Expense Utilities Expense Supplies Expense Bal 800 Collins indicates that at year-end, customers owe his $1,000 accrued service revenue, which he expects to collect early next year. Owe him $1,000 accrued service revenue, which he expects to collect early next year. These revenues have not been recorded. During the year, he collected $4,100 service revenue in advance from customers, but revenue in advance from customers, but the business has earned only $800 of that amount. During the year, he has incurred $2,400 of advertising expense, but he has not yet paid for it. Also, he has used up $2,100 of the office supplies. Collins determines that depreciation on equipment was $7,000 for the year. At December 31, 2014, he owes his employee $1,200 accrued salary. Collins expresses concern that withdrawals during the year might have exceeded the business's net income. To get a loan to expand the business. Collins must sow the bank that the business's owner's equity has grown from its original $40,000 balance. Has it? You and Collins agree that you will meet again in one week. Requirements 1. Prepare the financial statement that helps address the first issue concerning Collins. 2. Can Collins expect to get the loan? Give your reason(s) Discuss what you learned about the Company upon preparing the financial statements and whether Collins can anticipate securing the loan from the bank and your reasons for your opinion and potential suggestions for moving forward.
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.
These are T accounts Collins Consignment Sales Company
Prepare three financials statements
The accounts at December 31, 2014.'
One year ago, Ralph Collins founded Collins Consignment Sales Company and the business has prospered. Collins
Cash
Bal. 5,800 Bal. 12,300 Bal. 2,800 Bal. 2,600
Equipment Accumulated Dep. Equip. Accounts Payable
Bal. 52,000 18,500 Bal.
Salaries Payable Unearned Revenue Collins Capital , Collins Withdrawals
4,100 Bal. 40,000 Bal, Bal. 50,000
Service Revenue Salaries Expense Dep. Expense-equipment
80,700 Bal. Bal. 17,000
Advertising Expense Utilities Expense Supplies Expense
Bal 800
Collins indicates that at year-end, customers owe his $1,000 accrued service revenue, which he expects to collect early next year. Owe him $1,000 accrued service revenue, which he expects to collect early next year.
These revenues have not been recorded. During the year, he collected $4,100 service revenue in advance from customers, but revenue in advance from customers, but the business has earned only $800 of that amount. During the year, he has incurred $2,400 of advertising expense, but he has not yet paid for it. Also, he has used up $2,100 of the office supplies. Collins determines that
Collins expresses concern that withdrawals during the year might have exceeded the business's net income. To get a loan to expand the business. Collins must sow the bank that the business's owner's equity has grown from its original $40,000 balance. Has it?
You and Collins agree that you will meet again in one week.
Requirements
1. Prepare the financial statement that helps address the first issue concerning Collins.
2. Can Collins expect to get the loan? Give your reason(s)
Discuss what you learned about the Company upon preparing the financial statements and whether Collins can anticipate securing the loan from the bank and your reasons for your opinion and potential suggestions for moving forward.
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