It is now 30 June and our business is preparing adjustments via a worksheet. Complete the following adjustments in the worksheet (if no adjustment is necessary enter "0" in the relevant box). Then answer the 3 questions at the bottom of the table. 1 Prepaid 12000 rent on 1 April for three months. Adjustments have been done for April and May. 2 30 June is a Sunday. Wages are paid fortnightly (8000) with the last payment made on Friday 21 June. As the busienss operates from Monday to Firday we need to accrue one week. 3 Earned 2500 of Subscriptions Revenue which had already being paid for by the client. 4 Work in Progress (for Services) is calculated to be 2800. (Use accrued revenue). 5 Office Supplies were counted on 30 June. They totalled 4550. 6 Depreciation for June is 1350. 7 Interest on Note Payable is 600. This is payable in July. Worksheet for the month ended 30 June Unadjusted TB Adjustments Adjusted TB Account Dr Cr Ref Dr Cr Dr Cr Cash At Bank 31600 Answer Accounts Receivable 41350 Answer Inventory 22890 Answer Office Supplies 4850 Answer Answer Answer Answer Prepaid Rent 4000 Answer Answer Answer Answer Accrued Revenue 0 Answer Answer Answer Answer Equipment 72100 Answer Accum Depreciation 36700 Answer Answer Answer Answer Accounts Payable 32550 Answer Interest Payable 0 Answer Answer Answer Answer Salaries Payable 0 Answer Answer Answer Answer Unearned Revenue 4200 Answer Answer Answer Answer Notes Payable 75000 Answer Owners Capital 30980 Answer Income Summary Service Revenue 152300 Answer Answer Answer Answer Subscriptions Revenue 98700 Answer Answer Answer Answer COGS 56670 Answer Bank Fees 320 Answer Depreication Expense 14850 Answer Answer Answer Answer Interest Expense 6000 Answer Answer Answer Answer Rent Expense 26000 Answer Answer Answer Answer Salaries Expense 143000 Answer Answer Answer Answer Supplies Expense 6800 Answer Answer Answer Answer Total 430430 430430 Answer Answer Has this business made a profit or loss? What are total assets Will owners equity increase or decrease?
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.
It is now 30 June and our business is preparing adjustments via a worksheet.
Complete the following adjustments in the worksheet (if no adjustment is necessary enter "0" in the relevant box).
Then answer the 3 questions at the bottom of the table.
1 Prepaid 12000 rent on 1 April for three months. Adjustments have been done for April and May.
2 30 June is a Sunday. Wages are paid fortnightly (8000) with the last payment made on Friday 21 June. As the busienss operates from Monday to Firday we need to accrue one week.
3 Earned 2500 of Subscriptions Revenue which had already being paid for by the client.
4 Work in Progress (for Services) is calculated to be 2800. (Use accrued revenue).
5 Office Supplies were counted on 30 June. They totalled 4550.
6 Depreciation for June is 1350.
7 Interest on Note Payable is 600. This is payable in July.
Worksheet for the month ended 30 June |
|||||||
|
Unadjusted TB |
|
Adjustments |
Adjusted TB |
|||
Account |
Dr |
Cr |
Ref |
Dr |
Cr |
Dr |
Cr |
Cash At Bank |
31600 |
|
|
|
|
Answer |
|
|
41350 |
|
|
|
|
Answer |
|
Inventory |
22890 |
|
|
|
|
Answer |
|
Office Supplies |
4850 |
|
Answer |
Answer |
Answer |
Answer |
|
Prepaid Rent |
4000 |
|
Answer |
Answer |
Answer |
Answer |
|
Accrued Revenue |
0 |
|
Answer |
Answer |
Answer |
Answer |
|
Equipment |
72100 |
|
|
|
|
Answer |
|
Accum Depreciation |
|
36700 |
Answer |
Answer |
Answer |
|
Answer |
Accounts Payable |
|
32550 |
|
|
|
|
Answer |
Interest Payable |
|
0 |
Answer |
Answer |
Answer |
|
Answer |
Salaries Payable |
|
0 |
Answer |
Answer |
Answer |
|
Answer |
Unearned Revenue |
|
4200 |
Answer |
Answer |
Answer |
|
Answer |
Notes Payable |
|
75000 |
|
|
|
|
Answer |
Owners Capital |
|
30980 |
|
|
|
|
Answer |
Income Summary |
|
|
|
|
|
|
|
Service Revenue |
|
152300 |
Answer |
Answer |
Answer |
|
Answer |
Subscriptions Revenue |
|
98700 |
Answer |
Answer |
Answer |
|
Answer |
COGS |
56670 |
|
|
|
|
Answer |
|
Bank Fees |
320 |
|
|
|
|
Answer |
|
Depreication Expense |
14850 |
|
Answer |
Answer |
Answer |
Answer |
|
Interest Expense |
6000 |
|
Answer |
Answer |
Answer |
Answer |
|
Rent Expense |
26000 |
|
Answer |
Answer |
Answer |
Answer |
|
Salaries Expense |
143000 |
|
Answer |
Answer |
Answer |
Answer |
|
Supplies Expense |
6800 |
|
Answer |
Answer |
Answer |
Answer |
|
|
|
|
|
|
|
|
|
Total |
430430 |
430430 |
|
|
|
Answer |
Answer |
Has this business made a profit or loss? |
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What are total assets |
|
Will owners equity increase or decrease? |
|
Please show calculations as well.
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