Palisade Creek Co Adjusted Trail Balance May 31st 2019 Debit Amount Credit Amount Particulars Cash 84500 Accounts Receivable |Merchandise Inventory Estimated Retum Inventory Prepaid Insurance Stores Supplies Store Equipment Accumulated Dep- Store Equipment Accounts Payable | Customer Refund Payable Salaries Payable Lynn Tolley, Capital Lynn Tolley, Drawing Sales 245875 570000 50200 4800 4000 569500 70700 63150 89270 13600 685300 135000 5316205 Cost of Merchandise sold 2991950 Sales Salaries Expense Advertising Expense Depreciation Expense Store Supplies Expense Misc Selling Expense Office Salaries Expense Rent Expense Insurance Expense Misc Admin Expense 727800 292000 14000 9800 12600 417700 88700 12000 7800 6238225 6238225 Date Description Post. Ref. Debit Credit 2019 May 31 May 31
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.
Can you journalize the closing entries?
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