counting records and bank statement of Jeff's Seashell Store provide the following information at the end of April. The closing 'Cash' account balance was $29875. The bank statement shows a closing balance of $25000. On the last day of the month, cash receipts of $2500 were deposited into the bank account, but have not been recorded by the bank. Two payments made to suppliers totally $125 have also not been recorded by the bank. Interest of $1500 was charged during the month by the bank. It has been identified an error occurred
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.
The accounting records and bank statement of Jeff's Seashell Store provide the following information at the
end of April. The closing 'Cash' account balance was $29875. The bank statement shows a closing balance of
$25000. On the last day of the month, cash receipts of $2500 were deposited into the bank account, but have
not been recorded by the bank. Two payments made to suppliers totally $125 have also not been recorded by
the bank. Interest of $1500 was charged during the month by the bank. It has been identified an error occurred
with the recording of a $1350 cash sale in the business accounts, that should have been $350. What is the ending
reconciled cash balance?
A.None of the other answers
B.30,250
C.24,875
D.26,375
E.27,375
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