utar Payle ts Recevable Required: 1. Post the adjusting journal Adjusting journal entries a. Bad debts expense 20000 entries (a-d)in the adjustment columns in Allowance for bad debts 20000 b Prepaid rent 10000 the worksheet 2. Complete the adjusted trial Rent Expense 10000 balance 3. Extend to Income statement and Depreciation Expense 15,000 Accumulated Depreciation 15,000 balance sheet columns 4.Prepare a single- Salaries Expense 22,000 Salaries Payable 22000 step Income Statement 5. Prepare a balance Trai Balance Dr. 50000 2000 Account Ttles Adustments Adted tra alance Income Statement Balance Sheet Dr Dr. Or. Dr. Dr. Cash in Bank Accounts Receivatle Alowance for Rad Detts Prepad Reet Jocetqupment Accumulated Deprecation Ofice tpment Salare Payale Accounts Payabile Fred Leyes Capta Service come Salares Expee Rent Expense Jught and Water Spples Expene Teiephone spen Deprecation Expense TransportationExpene Bad Debpense sheet 6. Prepare the closing entries for all the income statement accounts 7. Prepare a 330000 20000 120000 300000 7000o0 post-closing trial balance 260000 11000 40000 70000 20000 20000 TOTAL 11500 115000
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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