WINDSOR TRIAL BALANCE DECEMBER 31, 2020 Unadjusted Adjusted Dr. Cr. Dr. Cr. Cash $15,000 $15,000 Accounts Receivable 21,000 24,700 Supplies 6,400 200 Prepaid Insurance 2,950 2,350 Equipment 65,000 65,000 Accumulated Depreciation-Equipment $30,000 $34,000 Accounts Payable 7,000 7,000 Interest Payable Notes Payable -0- 300 10,000 10,000 Unearned Service Revenue 6,200 4,400 Salaries and Wages Payable -0- 1,300 Common Stock 11,000 11,000 Retained Earnings 6,500 6,500 Service Revenue 60,400 65,900 Salaries and Wages Expense 15,400 16,700 Insurance Expense 600 Interest Expense 350 650 Depreciation Expense 4,000 Supplies Expense 6,200 Rent Expense 5,000 5,000 $131,100 $131,100 $140,400 $140,400
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.
Windsor was founded in January 2013. Presented below are adjusted and unadjusted
(a)Journalize the annual adjusting entries that were made. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
(b1)
The parts of this question must be completed in order. This part will be available when you complete the part above.(b2)
The parts of this question must be completed in order. This part will be available when you complete the part above.(b3)
The parts of this question must be completed in order. This part will be available when you complete the part above.(c)
The parts of this question must be completed in order. This part will be available when you complete the part above.
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