Wellness Hospitality prepares adjustments monthly and showed the following at September 30, 2014: Wellness Hospitality Unadjusted Trial Balance September 30, 2014 Account Acct. No. 101 106 109 111 126 201 210 301 302 401 522 537 Cash Accounts receivable.. Repair Supplies.... Prepaid rent...... Office furniture.. Accounts payable.. Notes payable....... John Moore, capital.... John Moore, withdrawals.... Hospitality Revenues.. Salaries expense.. Wages expense... Totals Debit 8,000 11,200 2,200 14,000 24,000 5,000 Credit 8,000 21,600 67,758 128,000 144,000 16,958 $225,358 $225,358 The following additional information is available for the month ended September 30, 2014: a. Interest of $162 had accrued on the notes payable for the month of September. b. The office furniture was acquired on September 1, 2014, and has an estimated four-year life. c. A count of the Repair Supplies revealed a balance on hand of $700. d. A review of the Prepaid Rent account showed that $10,000 had been used during September. e. Accrued wages of $2,800 had not been recorded at month-end. f. The September Internet bill for $100 had been received and must be paid by October 14. g. Accrued revenues of $6,200 were not recorded at September 30. Required a) Prepare adjusting entries for the month ended September 30, 2014, based on the above. b) Complete the adjusted trial balance showing the Income Statement, Equity Statement and Balance Sheet.
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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