Weak am 1 (Ch 1-4)-8P19-OER-OM g dng a pr g w Simply Sewing, Inc. had the following account balances on December 31: Retained Earnings, January 1 $50,000 Supplies 8,000 Unearned Sewing Revenue 5,000 Prepaid Rent 12,000 Prepare the following adjusting journal entries for the year end December 31. a) A physical count of supplies at December 31 shows the balance on hand is $3,000. b) The company earned $2,000 of the sewing work that was paid for in advance. c) The prepaid rent listed above was paid for by the company on June 1 and represents one year of rent. It has not been adjusted since it was paid on June 1. Prepare the journal entry to adjust the Prepaid Rent account to the correct amount as of December 31. (Write journal entries in proper journal entry format. Do not abbreviate when writing journal entries and make sure you identify which line is the Debit (DR) and which line is a Credit (CR) using one of the following two examples.) 4,000 Example 1: DR Cash CR Revenue 4,000 OR Debit Credit 4,000 Example 2: Cash 4,000 Revenue OR HTMLEditond Example 3: Debit Cash 4.000 and Credit Revenue 4.000 B MacBook Air 11
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.
Weak am 1 (Ch 1-4)-8P19-OER-OM g dng a pr g w Simply Sewing, Inc. had the following account balances on December 31:
a) A physical count of supplies at December 31 shows the balance on hand is $3,000.
b) The company earned $2,000 of the sewing work that was paid for in advance.
c) The prepaid rent listed above was paid for by the company on June 1 and represents one year of rent.
It has not been adjusted since it was paid on June 1. Prepare the journal
Example 1: DR Cash CR Revenue 4,000 OR Debit Credit 4,000
Example 2: Cash 4,000 Revenue OR HTMLEditond
Example 3: Debit Cash 4.000 and Credit Revenue 4.000 B MacBook Air 11
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