Trial Balance : A trial balance is firstly prepared while making the financial statements. It is the summary of the closing balance of all the ledger accounts on a particular date. A trial balance is often prepared at the end of the accounting period in order to assist the accountants in the preparation of the financial statements. Adjusted Trial Balance: Once the adjusting entries are made and posted to the ledger accounts, an adjusted trial balance is prepared. The main purpose of preparing an adjusted trial balance (second trial balance in an accounting cycle) is to check whether the debit and credit balance of the statements after passing the adjustment entries are equal. Ledger Account: A ledger account helps to prepare the financial statements. The accounts of all the items are prepared separately such as assets, liabilities, revenues, expenses, and owners’ equity and so on. The ledger accounts along with their balances are further posted to the trial balance. Worksheet: A worksheet is a tool that is used while preparing a financial statement. It is a type of form having multiple columns and it is used in the adjustment process. The use of a worksheet is optional for any organization. A worksheet can neither be considered as a journal nor a part of the general ledger. Usually organizations use Microsoft Excel in order to use a worksheet electronically. To Identify: The relationship between the amount shown in the adjusted trial balance column for an account and that account’s ledger balance.

Question

River is a salaried exempt worker who earns $73,630 per year for a 35-hour workweek. During a biweekly pay period, River worked 105 hours. What is the gross pay?

Answer 1

Question

Chapter 4, Problem 3Q

To determine

Trial Balance: A trial balance is firstly prepared while making the financial statements. It is the summary of the closing balance of all the ledger accounts on a particular date. A trial balance is often prepared at the end of the accounting period in order to assist the accountants in the preparation of the financial statements.

Adjusted Trial Balance: Once the adjusting entries are made and posted to the ledger accounts, an adjusted trial balance is prepared. The main purpose of preparing an adjusted trial balance (second trial balance in an accounting cycle) is to check whether the debit and credit balance of the statements after passing the adjustment entries are equal.

Ledger Account: A ledger account helps to prepare the financial statements. The accounts of all the items are prepared separately such as assets, liabilities, revenues, expenses, and owners’ equity and so on. The ledger accounts along with their balances are further posted to the trial balance.

Worksheet: A worksheet is a tool that is used while preparing a financial statement. It is a type of form having multiple columns and it is used in the adjustment process. The use of a worksheet is optional for any organization. A worksheet can neither be considered as a journal nor a part of the general ledger. Usually organizations use Microsoft Excel in order to use a worksheet electronically.

To Identify: The relationship between the amount shown in the adjusted trial balance column for an account and that account’s ledger balance.

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River is a salaried exempt worker who earns $73,630 per year for a 35-hour workweek. During a biweekly pay period, River worked 105 hours. What is the gross pay?

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