1 Sunstate Computer Supply End-of-Perlod Spreadsheet For the Year Ended December 31, 20- TRAL BALANCE 4. ADUSTMENTS ADASTED TRIAL BALANC ACCOUNT TITLE GEDIT DERIT 22,000.00 15,400.00 DERIT 6 Cash 7 Accounts Recelvable 8 Merchandise Inventory 9 stimated Returns Inventory 10 Supplies 11 Prepaid insurance 22,000.00 15,400.00 82,500.00 93,500.00 3520.00 8,800.00 5940.00 143,000.00 4730.00 3,630.00 4,180.00 143,000.00 275,000.00 12 Land 13 Bulding 14 Accum. Depr.-Bulding 15 Store Equipment 16 Accum. Depr.--Store Equipment 17 Accounts Payable 18 Customer Refunds Payable 19 Wages Payatle 20 Sales Tax Payable 275,000.00 110,000.00 123,750.00 110,000.00 110,000.00 44,000.00 10,560.00 49,500.00 10,560.00 6270.00 3,850.00 3,850.00 6,490.00 9790.00 312741.00 6,490.00 4,950.00 312,741.00 21 Unearmed Rent Revenue 22 M. Thibeault, Capital 23 M. Thibeault, Drawing 24 Income Summary 28,600.00 28,600.00 82,500.00 93,500.00 25 3,520.00 4,730.00 577,654.00 26 Sales 577,654.00 27 Sales Retums and Allowances 15,950.00 18,370.00 28 Rent Revenue 4,840.00 29 Purchases 137 500.00 137,500.00 1,540.00 1,980.00 30 Purchases Retums and Allowances 1,540.00 1,980.00 31 Purchases Discounts 32 Freight-in 33 Wages Expense 34 Advertising Expense 35 Supplies Expense 36 Phone Expense 37 URities Expense 38 Insurance Expense 39 Depr. Expense-Bulding 40 Depr. Expense-Store Equipment 41 Rent Expense 2,310.00 137 500.00 2,310.00 141,350.00 14,300.00 14,300.00 5,170.00 1,485.00 8,800.00 1760.00 13,750.00 1,485.00 8,800.00 5,500.00 66,000.00 1202,355.00 STEP 3 502,315.00 181,929.00 66,000.00 1078,605.00 42 1078,605.00 1202,355.00 43 STEP 1 STEP 2 44 STEP 4 684,244.00 45 Net Income 46
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.
WORKING BACKWARD FROM ADJUSTED
DETERMINE
is taken from the books of Sunstate Computer Supply, a business owned
by Michelle Thibeault, for the year ended December 31, 20-, Sunstate is
on the periodic inventory system.
REQUIRED
1. Determine the adjusting entries by analyzing the difference
between the adjusted trial balance and the trial balance.
2. Journalize the adjusting entries in a general journal.
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