Use the unadjusted trial balance of Electric Bike on December 31, 2023. Debit Credit Cash $ 7,900 Accounts receivable 22,465 Merchandise inventory 34,400 Store supplies 2,315 Office supplies 895 Prepaid insurance 4,455 Equipment 72,290 Accumulated depreciation, equipment $ 13,455 Accounts payable 7,800 Salaries payable 0 Braeden Li, capital 167,005 Braeden Li, withdrawals 61,000 Interest income 290 Sales 528,000 Sales returns and allowances 4,870 Cost of goods sold 380,960 Salaries expense 96,100 Rent expense 28,900 Supplies expense 0 Depreciation expense, equipment 0 Insurance expense 0 Totals $ 716,550 $716,550 Required: 1. Record adjusting entries for the following information. a. The records show that the equipment was estimated to have a total estimated useful life of 10 years with a residual value at the end of its life of $14,290. b. The balance in the Prepaid Insurance account was reviewed and it was determined that $315 was unused at December 31, 2023. c. A review of the store supplies on December 31, 2023, revealed a balance on hand of $1,940; a similar examination of the office supplies showed that $700 had been used. d. Accrued salaries payable, $1,700. e. A count of the merchandise inventory revealed a balance on hand December 31, 2023, of $33,620.
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.
ssss
Step by step
Solved in 3 steps
