This alphabetized adjusted trial balance is for GalaVu Entertainment as of its December 31, 2023, year-end: Accounts payable $ 44,000 Accounts receivable $ 18,700 Accumulated depreciation, automobiles 69,000 Accumulated depreciation, equipment 20,500 Advertising expense 9,000 Automobiles 140,000 Cash 11,000 Depreciation expense, automobiles 13,200 Depreciation expense, equipment 4,100 Equipment 65,000 Revenue 240,000 Interest income 150 Interest expense 3,500 Interest payable 75 Interest receivable 300 John Conroe, capital 23,000 John Conroe, withdrawals 19,000 Land 35,000 Long-term notes payable 115,000 Notes receivable (due in 90 days) 80,000 Office supplies 4,000 Office supplies expense 13,000 Repairs expense, automobiles 8,400 Salaries expense 76,225 Salaries payable 5,500 Unearned revenue 11,000 Wages expense 27,800 Totals $ 528,225 $ 528,225 Use the information in the trial balance to prepare: a. The income statement for the year ended December 31, 2023. The statement of changes in equity for the year ended December 31, 2023, assuming that the owner made additional investments of $15,000 during the year. . The balance sheet as of December 31, 2023. (Be sure to list the assets and liabilities in order of their liquidity.
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.
This alphabetized adjusted
Accounts payable $ 44,000
Use the information in the trial balance to prepare:
a. The income statement for the year ended December 31, 2023. The statement of changes in equity for the year ended December 31, 2023, assuming that the owner made additional investments of $15,000 during the year. .
The
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