Vision Consulting Inc. began operations on January 1, 2013. Its adjusted trial balance at December 31, 2014 and 2015 is shown below. Other information regarding Vision Consulting Inc. and its activities during 2015 follow in (a) through (e) : a. Assume all accounts have normal balances. b. Equipment was sold for cash of $30,600. c. Old machinery was sold for cash of $37,200. New machinery was purchased for $21,000 cash. d. Share capital was issued for cash. e. Cash dividends were declared and paid. Using the information provided, prepare a statement of cash flows (using the indirect method) for the year ended December 31, 2015. Vision Consulting Inc. Adjusted Trial Balance Account Accounts Payable Accounts Receivable Accumulated Depreciation, Equipment Accumulated Depreciation, Machinery. Allowance for Doubtful Accounts Depreciation Expense, Equipment. Depreciation Expense, Machinery. Cash Cash Dividends Equipment Machinery. Merchandise Inventory. Long-term Notes Payable Other Expenses (including losses). Retained earnings Revenues (including gains). Share capital, Unearned Revenue December 31 2015 2014 80,430 67,000 57,500 72,000 1,300 56,500 5,800 63,000 5,500 11,000 5,500 5,500 6,100 6,100 205,830 205,000 70,000 70,000 10,300 103,000 36,700 113,000 264,030 217,500 69,590 85,000 680,000 15,000 86,000 86,000 711,600 96,600 338,000 293,000 37,740 49,000 X (select one) Statement of Cash Flows (select one)
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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