Mason's Delivery Service Work Sheet (Partial) For Month Ended September 30, 20 - - TAAKI AITNETS ACCDUMIE 1 Cash 600 00 940 00 6 3 5 00 1200 00 6 400 00 2 Accounts Recelvable 3 Supples 2 3 4 Prepaid Insurance 5 Delvery Equipment 6 Accum. Depr.-Delivery Equipment 7 Accounts Payable 8 Wages Payable 9 MI Mason, Capital 10 MI Mason, Drawing 11 Delivery Fees 4 5 1 2 2 0 00 8 80 0 0 00 1400 00 10 6 2 00 00 11 1500 00 4 60 00 8 00 00 12 Wages Expense 12 13 Advertsing Expense 14 Rent Expense 13 14 15 Supplies Expense 16 Phone Expense 17 Insurance Expense 18 Repair Expense 19 Ol and Gas Expense 20 Depr. Expense-Delivery Equipment 21 15 165 00 16 17 230 00 9 0 00 18 19 20 15 4 2 0 00 15 4 2| o 00 21
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.
ADJUSTMENTS AND WORK SHEET SHOWING NET INCOME The
Data to complete the adjustments are as follows:
(a) Supplies inventory as of september 30 , $90.
(b) Insurance expired (used), $650,
(c)
(d) Wages earned by employees but not paid as of september 30, $350
Required
1. Enter the adjustments in the Adjustments columns of the work sheet.
2. Complete the work sheet.
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