Bob Night opened "The General's Favorite Fishing Hole." The fishing camp is open from April through September and attracts many famous college basketball coaches during the off-season. Guests typically register for one week, arriving on Sunday afternoon and returning home the following Saturday afternoon. The registration fee includes room and board, the use of fishing boats, and professional instruction in fishing techniques. Ledger balances for The General's Favorite Fishing Hole at the end of April, after adjusting entries, are as follow: Accounts Payable $66,500 Accumulated Depreciation- Fishing Boats 1,000 Bob Night, Capital 90,000 Bob Night, Drawing 6,000 Cash 130,650 Depreciation Expense-Fishing Boats 1,000 Fishing Boats 60,000 Food Supplies 8,000 Food Supplies Expense 30,700 Insurance Expense 1,500 Office Supplies 100 Office Supplies Expense 400 Postage Expense 150 Prepaid Insurance 7,500 Registration Fees 171,700 Rent Expense 40,000 Phone Expense 1,200 Utilities Expense 2,000 Wages Expense 40,500 Wages Payable 500 7. Prepare the income statement. The General's Favorite Fishing HoleIncome StatementFor Month Ended April 30, 20-- Revenues: $- Select - Expenses: $- Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - Total expenses $- Select -
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.
Bob Night opened "The General's Favorite Fishing Hole." The fishing camp is open from April through September and attracts many famous college basketball coaches during the off-season. Guests typically register for one week, arriving on Sunday afternoon and returning home the following Saturday afternoon. The registration fee includes room and board, the use of fishing boats, and professional instruction in fishing techniques.
Ledger balances for The General's Favorite Fishing Hole at the end of April, after
| Accounts Payable | $66,500 |
| Accumulated Depreciation- Fishing Boats | 1,000 |
| Bob Night, Capital | 90,000 |
| Bob Night, Drawing | 6,000 |
| Cash | 130,650 |
| Depreciation Expense-Fishing Boats | 1,000 |
| Fishing Boats | 60,000 |
| Food Supplies | 8,000 |
| Food Supplies Expense | 30,700 |
| Insurance Expense | 1,500 |
| Office Supplies | 100 |
| Office Supplies Expense | 400 |
| Postage Expense | 150 |
| Prepaid Insurance | 7,500 |
| Registration Fees | 171,700 |
| Rent Expense | 40,000 |
| Phone Expense | 1,200 |
| Utilities Expense | 2,000 |
| Wages Expense | 40,500 |
| Wages Payable | 500 |
7. Prepare the income statement.
The General's Favorite Fishing HoleIncome StatementFor Month Ended April 30, 20--
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