ng adjusted trial balance for Bell Servicing was prepared at the end of the fiscal year, Debit $ 7,400 15,600 9,400 3,400 50,400 68,400 101 Cash 119 Merchandise inventory 125 Supplies 128 Prepaid insurance 165 Store equipment 166 Accumulated depreciation, store equipment 167 office equipment 168 201 301 Jonah Bell, capital Account Accumulated depreciation, office equipment Accounts payable 612 613 302 413 Sales 415 Sales discounts 505 Jonah Bell, withdrawals Cost of goods sold 622 623 637 Depreciation expense, store equipment Depreciation expense, office equipment Sales salaries expense office salaries expense Insurance expense, store Insurance expense, office Rent expense, office space Rent expense, selling space 651 office supplies expense Store supplies expense 638 640 641 652 40,400 1,400 74,200 4,600 3,200 45,400 31,400 1,400 1,300 12,400 16,400 1,140 1,800 Credit $ 46,200 33,600 15,400 25,640 285,800
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.
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