Use the following end-of-period spreadsheet below to answer the question that follow. Finley CompanyEnd-of-Period SpreadsheetFor the Year Ended December 31 Adjusted Trial Balance Income Statement Balance Sheet Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 16,000 16,000 Accounts Receivable 6,000 6,000 Supplies 2,000 2,000 Equipment 19,000 19,000 Accumulated Depreciation 6,000 6,000 Accounts Payable 10,000 10,000 Wages Payable 2,000 2,000 C. Finley, Capital 13,250 13,250 C. Finley, Drawing 1,000 1,000 Fees Earned 45,786 45,786 Wages Expense 20,595 20,595 Rent Expense 6,952 6,952 Depreciation Expense 5,489 5,489 77,036 77,036 33,036 45,786 44,000 31,250 Net Income 12,750 12,750 45,786 45,786 44,000 44,000 Use the end-of-period spreadsheet for Finley Company. The ending balance in C. Finley, Capital is a.$13,250 b.$25,000 c.$12,750 d.$25,640
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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Use the following end-of-period spreadsheet below to answer the question that follow.
Finley Company
End-of-Period Spreadsheet
For the Year Ended December 31Adjusted Trial Balance Income Statement Balance Sheet Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 16,000 16,000 Accounts Receivable 6,000 6,000 Supplies 2,000 2,000 Equipment 19,000 19,000 Accumulated Depreciation 6,000 6,000 Accounts Payable 10,000 10,000 Wages Payable 2,000 2,000 C. Finley, Capital 13,250 13,250 C. Finley, Drawing 1,000 1,000 Fees Earned 45,786 45,786 Wages Expense 20,595 20,595 Rent Expense 6,952 6,952 Depreciation Expense 5,489 5,489 77,036 77,036 33,036 45,786 44,000 31,250 Net Income 12,750 12,750 45,786 45,786 44,000 44,000 Use the end-of-period spreadsheet for Finley Company. The ending balance in C. Finley, Capital is
a.$13,250b.$25,000c.$12,750d.$25,640
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