Inventory 1/10/2021 31/12/2021 Raw Materials $72,000 $65,000 Work in Progress $138,875 $129,125 Finished Goods $149,500 $141,700 Other information: Sales Revenue $1,694,950 Factory Labour 239,700 Raw Materials Purchased 235,000 Office Cleaner’s Wages 4,500 Factory Supplies Used 23,500 Depreciation: Factory Plant & Equipment 32,000 Total Utilities 118,750 Plant Supervisor’s Salary 180,000 Design Costs ( Logo) 4,300 Packaging Material Cost 35,000 Total Insurance 60,000 Delivery Vehicle Drivers’ Wages 41,250 Depreciation: Delivery Vehicle 7,250 Property Taxes 105,000 Administrative Wages & Salaries 123,750 Sales Commission 2% of Net Profit before Commission Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs. Of the total insurance, 66⅔% relates to the manufacturing facilities & 33⅓% relates to the office area The property taxes should be shared: 75% factory facilities & 25% general & administrative costs Prepare an income statement for personal for the quarter ended December 31, 2021. List the non-manufacturing overheads in order of size starting with the largest
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.
Inventory 1/10/2021 31/12/2021
Raw Materials $72,000 $65,000
Work in Progress $138,875 $129,125
Finished Goods $149,500 $141,700
Other information:
Sales Revenue $1,694,950
Factory Labour 239,700
Raw Materials Purchased 235,000
Office Cleaner’s Wages 4,500
Factory Supplies Used 23,500
Total Utilities 118,750
Plant Supervisor’s Salary 180,000
Design Costs ( Logo) 4,300
Packaging Material Cost 35,000
Total Insurance 60,000
Delivery Vehicle Drivers’ Wages 41,250
Depreciation: Delivery Vehicle 7,250
Property Taxes 105,000
Administrative Wages & Salaries 123,750
Sales Commission 2% of Net Profit before Commission
Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs.
Of the total insurance, 66⅔% relates to the manufacturing facilities & 33⅓% relates to the office area
The property taxes should be shared: 75% factory facilities & 25% general & administrative costs
Prepare an income statement for personal for the quarter ended December 31, 2021. List the non-manufacturing
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