In its first year of operations, 2023, Culver Corp. invoiced $190,000 in service revenue. Of that amount, $23,000 was still owing from customers at the end of year. In 2023, Culver incurred various operating expenses totalling $82,000, of which $86,000 was paid in cash. Salaries and wages paid to employees totalled $72,000 and $3,400 was still owing at the end of the year. In addition, Culver prepaid $5,300 for insurance coverage that covered the last half of 2023 and the first half of 2024. Culver estimates it will owe $8,300 in income tax when it files its corporate income tax return after its 2023 year end. (a) Calculate the net income for 2023 under the accrual basis of accounting. Net income $

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 resu…

Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

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 a…

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…

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 repor…