nsaction cash in ement of bility tion ash nt of le adju mies of asinis si obuloni atom 5249qxa mollusiomast by the regular accounting staff.36 15820-61 10000 15226 s 01 tibstols bus innos YEAR-END AT OVERNIGHT AUTO SERVICE To illustrate the various types of adjusting entries, we will again use our example involving Overnight Auto Service. Chapter 3 concluded with Overnight's trial balance dated 28 February 2013 (the end of the company's second month of operations). We will now skip ahead to 31 December 2013-the end of Overnight's first year of operations. This will enable us to illustrate the preparation of annual financial statements, rather than statements that cover only a single month. 975 mod vor 1925. a sus hingang, camminent bon Most companies make adjusting entries every month. We will assume that Overnight has been following this approach throughout 2013. The company's unadjusted trial balance dated 31 December 2013, appears in Exhibit 4-2. It is referred to as an unadjusted trial balance because Overnight last made adjusting entries on 30 November; therefore, it is still necessary to make adjusting entries for the month of December. tiniamsi esilqque or to obem ei olemines bsau noad sved of bomuzan su "anizzion" 16 Cash..... Accounts receivable Shop supplies. Unexpired insurance. Notes payable. Accounts payable Income taxes payable.. Unearned rent revenue. controller or by a professional accountant, rather than In many businesses, the Land Building. Accumulated depreciation: building Tools and equipment Accumulated depreciation: tools and equipment Share capital. Retained earnings .92090x Dividends b. die...om Repair service revenue. Advertising expense Wages expense Supplies expense OVERNIGHT AUTO SERVICE Trial Balance 31 December 2013 Depreciation expense: building. Depreciation expense: tools and equipment. I Itilition $ 18,592 6,500 1,800 4,500 52,000 36,000 mon esilqque Ini bozn assd 12,000 $ 1,500 2,000 4,000 2012 v gaitzuibs 2,690 bsn li (S) bás asdass 1,56020 ed.o. betsmites esilqquz to 9,000 s 80,000 2 เวioๆ หวกล้า 0 og soms 14,000sivis2 s sbiv ad29ving voilo 31.250 171,250 3,900 etaulli of 56,800 viennengmos 6,900 11ho is sm yo ni slidw goloidov1,500 mo of se wallot 26. 10u0906 15222,000 badan zew $ чел it mo 21 Exh UNA BAL

This pages is about explaining a type of adjusting entries. In the second paragraph, last sentances, "Thus,...November." Why is in October and November? How about the December? As the trial balacne shown in other image is in Decemenr 31, so the 1560 liability for income taxes payable represaesnts only the income taxes accrued from October to December. But not to Novemebr. Yes? As this three months liability haven't paid yet!