A Pre-Closing Trial Balance for Shady Lane Senior Living Center is listed below. From the list of accounts provided, prepare an activity statement. In this instance, there are no assets released from restrictions. Download the excel file provided. Prepare the activity statement, save it on your computer, and upload your response in the drop box below. Cash $121,000 Pledges Receivable 50,240 Interest Income Receivable 500 Inventory 1,000 Investments – long term 492,600 Land 42,000 Building 162,800 Vintage Car Collection
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.
A Pre-Closing
Cash $121,000
Pledges Receivable 50,240
Interest Income Receivable 500
Inventory 1,000
Investments – long term 492,600
Land 42,000
Building 162,800
Vintage Car Collection 60,000
Allowance for Uncollectible Pledges 1,000
Accounts Payable 600
Notes Payable 1,000
Deferred Revenue 400
Long Term Loans Payable 100,000
Mortgage Payable 14,000
Net Assets: UR Undesignated 100,000
Net Assets: UR Designated 60,000
Net Assets: TR 100,000
Net Assets: PR 200,000
Program Expenses 42,300
SS: Mgt & Genl Exp 9,600
SS: Fundraising Exp 3,600
Reclassifications OUT-TR 44,200
Loss on Disposal of equipment 600
Revenue: Contributions-UR 26,700
Revenue: Contributions – TR 45,440
Revenue: Contributuions – PR 300,000
Revenue: Investment Income – UR 4,100
Revenue: Investment Income – TR 2,400
Revenue: Investment Gains – PR 7,600
Revenue: Fees – UR 400
Reclassifications IN-UR 44,200
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