The accounting records of Flint Inc. show the following data for 2025: Life insurance expense on officers was $7,000. Equipment was acquired in early January for $441,000. Straight-line depreciation over a 6-year life is used, with no salvage value. For tax purposes, Flint used a 30% rate to calculate depreciation. Interest revenue on municipal bonds totaled $3,400. Product warranties were estimated to be $87,000 in 2025. Actual repair and labor costs related to the warranties in 2025 were $24,000. The remainder is estimated to be paid evenly in 2026 and 2027. Sales on an accrual basis were $518,000. For tax purposes, $399,000 was recorded on the installment-sales method. Fines incurred for securities violations were $11,000. Pretax financial income was $482,000. The tax rate is 30% 1. 2. 3. 4. 5. 6. 7.

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…