Provide the trial balance and t-accounts of the following. Thank you
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.
![FEB
DATE
2022
14 Cash in Bank
15 Equipment Computer
Cash in Bank
Shikamaru Nara, Capital
To record initial investment made by the owner.
To record purchase of a computer unit from Choji Akimichi Computer
Store through issuance of Metrobank Check No. 001.
17 Cash on Hand
SHIKAMARU COMPUTER REPAIR BUSINESS
GENERAL JOURNAL
16 Memorandum Entry:
Hired Temari as experienced secretary.
PARTICULARS
Service Revenue
To record the rendering of service to Ino Yamanaka and collection of cash.
18 Cash on Hand
18 Accounts Receivable
Service Revenue
To record the rendering of service to Neji Hyuga on account.
19 Office Supplies
Unearned Revenue
To record receipt of cash for services to be rendered in the future.
20 Utilities Expense
Accounts Payable
To record purchase of office supplies on account.
Accounts Payable
To record receipt of the utilities bill for the month of February.
25 Salaries Expense
Cash on Hand
To record payment of salary to Temari.
27 Shikamaru Nara, Drawings
Cash on Hand
To record the owner's withdrawal of cash.
F
102
301
106
102
101
401
104
401
101
202
105
201
501
201
502
101
302
101
DEBIT
200,000.00
25,000.00
10,000.00
15,000.00
20,000.00
5,000.00
6,000.00
4,000.00
5,000.00
CREDIT
200,000.00
25,000.00
10,000.00
15,000.00
20,000.00
5,000.00
6,000.00
4,000.00
5,000.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F814d91f8-58df-45b6-b023-4e168dede4bd%2F46b21afe-335f-4ee2-83af-108a2203ff3d%2Ft7qcoi4_processed.jpeg&w=3840&q=75)
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