A D F. H. Retained Earnings Statement Debit J K Income Balance Sheet Debit 3 Trial Balance Adjustments Statement Debit Credit 4 Accounts Debit Credit Debit Credit Credit Credit 1,000 2,700 Cash 6 Accounts Receivable Allowance for Doubtful Accounts Note Receivable (due 5/1/20) Inventory 10 Land 11 Buildings and Equipment 12 Accumulated Depreciation 13 Accounts Payable 14 Notes Payable (due 4/1/22) 15 Common Stock (2,000 shares) 16 30 1,200 9,200 4,500 20,600 8,790 4,050 4,000 5,000 6,120 Retained Earnings (1/1/19) 17 Dividends 18 Sales Revenue 19 | Rent Revenue 20 600 25,140 550 9,050 2,750 Cost of Goods Sold 21 Salaries Expense 22 Delivery Expense 23 Heat and Light Expense Other Expenses 720 820 24 540 25 Totals 53,680 53,680 26 The following additional information is available: (a) salaries accrued but unpaid total $250; (b) the $80 heat and light bill for December has not been recorded or paid; (c) depreciation expense totals $810 on the buildings and equipment; (d) interest accrued on the note payable totals $380 (this will be paid when the note is repaid); (e) the company leases a portion of its floor space to KT & Daniel Specialty Company for $50 per month, and KT & Daniel has not yet paid its December rent; (f) interest accrued on the note receivable totals $80; (g) bad debts expense is $70; and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2017.
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.
Devlin Company has prepared following partially completed worksheet for the year ended December 31, 2019:
1. Complete the worksheet. (Round to the nearest dollar.)
2. Prepar company's financial statements.
3. Prepare (a) adjusting and (b ) closing entries in the general journal.
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