Use the following list of accounts for Milner's Star Express Cleaning Service. Cash $2,026 Fees Earned 13,835 Accounts Payable 7,530 D. Milner, Capital January 1, 20-- 6,000 D. Milner, Drawing 1,750 Utilities Expense 153 Prepaid Insurance 1,216 Rent Expense 1,200 Accounts Receivable 4,080 Equipment 15,290 Wages Expense 1,650 Required: 1. Prepare an income statement for the year ended December 31, 20--. Milner's Star Express Cleaning Service Income Statement For the Year Ended December 31, 20-- Revenues: $fill in the blank e144ae027f9906e_2 Expenses: $fill in the blank e144ae027f9906e_4 fill in the blank e144ae027f9906e_6 fill in the blank e144ae027f9906e_8 Total expenses fill in the blank e144ae027f9906e_9 $fill in the blank e144ae027f9906e_11 2. Prepare a statement of owner's equity for the year ended December 31, 20--. Milner's Star Express Cleaning Service Statement of Owner's Equity For the Year Ended December 31, 20-- $fill in the blank 76a94b04efcef99_2 $fill in the blank 76a94b04efcef99_4 fill in the blank 76a94b04efcef99_6 fill in the blank 76a94b04efcef99_8 $fill in the blank 76a94b04efcef99_10 3. Prepare a balance sheet at December 31, 20--. Milner's Star Express Cleaning Service Balance Sheet December 31, 20-- Assets $fill in the blank 2aefeb0ca027073_2 fill in the blank 2aefeb0ca027073_4 fill in the blank 2aefeb0ca027073_6 fill in the blank 2aefeb0ca027073_8 Total assets $fill in the blank 2aefeb0ca027073_9 Liabilities $fill in the blank 2aefeb0ca027073_11 Owner's Equity fill in the blank 2aefeb0ca027073_13 Total liabilities & owner's equity $fill in the blank 2aefeb0ca027073_14
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.
Use the following list of accounts for Milner's Star Express Cleaning Service.
| Cash | $2,026 |
| Fees Earned | 13,835 |
| Accounts Payable | 7,530 |
| D. Milner, Capital January 1, 20-- | 6,000 |
| D. Milner, Drawing | 1,750 |
| Utilities Expense | 153 |
| Prepaid Insurance | 1,216 |
| Rent Expense | 1,200 |
| 4,080 | |
| Equipment | 15,290 |
| Wages Expense | 1,650 |
Required:
1. Prepare an income statement for the year ended December 31, 20--.
| Milner's Star Express Cleaning Service | ||
| Income Statement | ||
| For the Year Ended December 31, 20-- | ||
| Revenues: | ||
| $fill in the blank e144ae027f9906e_2 | ||
| Expenses: | ||
| $fill in the blank e144ae027f9906e_4 | ||
| fill in the blank e144ae027f9906e_6 | ||
| fill in the blank e144ae027f9906e_8 | ||
| Total expenses | fill in the blank e144ae027f9906e_9 | |
| $fill in the blank e144ae027f9906e_11 | ||
2. Prepare a statement of owner's equity for the year ended December 31, 20--.
| Milner's Star Express Cleaning Service | ||
| Statement of Owner's Equity | ||
| For the Year Ended December 31, 20-- | ||
| $fill in the blank 76a94b04efcef99_2 | ||
| $fill in the blank 76a94b04efcef99_4 | ||
| fill in the blank 76a94b04efcef99_6 | ||
| fill in the blank 76a94b04efcef99_8 | ||
| $fill in the blank 76a94b04efcef99_10 | ||
3. Prepare a
| Milner's Star Express Cleaning Service | |
| Balance Sheet | |
| December 31, 20-- | |
| Assets | |
| $fill in the blank 2aefeb0ca027073_2 | |
| fill in the blank 2aefeb0ca027073_4 | |
| fill in the blank 2aefeb0ca027073_6 | |
| fill in the blank 2aefeb0ca027073_8 | |
| Total assets | $fill in the blank 2aefeb0ca027073_9 |
| Liabilities | |
| $fill in the blank 2aefeb0ca027073_11 | |
| Owner's Equity | |
| fill in the blank 2aefeb0ca027073_13 | |
| Total liabilities & owner's equity | $fill in the blank 2aefeb0ca027073_14 |
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