Debit Credit Cash 67500 Accounts Receivable 46000 Allowance for Doubtful accounts 2000 Merchandise Inventory 60000 Office supplies 2800 Accounts payable 16000 Salaries payable 850 Common Stock 20000 Retained Earnings 60630 Sales 550000 Sales return and allowance 4500 Sales discounts 4250 COGS 382450 Salaries expense 44000 Advertising Expense 8150 Rent expense 24325 Other operating expense 450 Interest expense 5055 649480 649480 Above is the adjusted trail balance. What is the amount of total expense Record the closing entries
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.
|
|
Debit |
Credit |
|
Cash |
67500 |
|
|
|
46000 |
|
|
Allowance for Doubtful accounts |
|
2000 |
|
Merchandise Inventory |
60000 |
|
|
Office supplies |
2800 |
|
|
Accounts payable |
|
16000 |
|
Salaries payable |
|
850 |
|
Common Stock |
|
20000 |
|
|
|
60630 |
|
Sales |
|
550000 |
|
Sales return and allowance |
4500 |
|
|
Sales discounts |
4250 |
|
|
COGS |
382450 |
|
|
Salaries expense |
44000 |
|
|
Advertising Expense |
8150 |
|
|
Rent expense |
24325 |
|
|
Other operating expense |
450 |
|
|
Interest expense |
5055 |
|
|
|
649480 |
649480 |
Above is the adjusted trail balance.
- What is the amount of total expense
- Record the closing entries
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