A B E Balloons and Baubbles 2 End-of-Perod Spreadsheet For the Year Ended December 31, 20-1 4 RALBALANKE ADUSTWENTS ADJUSTED TRIAL BALA MCE ACCOUNT INLE 5 DEIT CREDIT DENT CEDIT DENT ORENT Cash 18,000.00 18,000.00 Accounts Recelvable 12,600.00 12,600.00 8 Marchandbelmentory 67,500.00 D) 76,500.00 (a) 67,500.00 76,500.00 Estinated Retuns inventory 2,880.00 (e) 370.00 (d) 2.880.00 3,870.00 10 Supples 4,230.00 1,440.00 7,200.00 2,970.00 11 Prepald lasurance 4,860.00 3420.00 12 Land 117,000.00 117,00.00 13 Bulding 14 Accun. Depr.-Bilding 25,000.00 225,00.00 90,000 00 11,250.00 101250.00 15 StoreEquipment 16 Accun. Depr-Stor Equipment 17 Accounts Payable 90,00.00 90,00.00 36,000.00 4,500.00 40,500.00 8,640.00 8,640.00 18 Customer Refands Payable 3,15000 1,980.00 5,130.00 19 Wages Payable 20 Sales Tax Payable 21 Uneamed Repar Revenue 22 L Manow, Capital 23 L Manow, trawng 3,150.00 3,150.00 5,310.00 5310.00 3,960.00 8,010.00 00 255,87900 4,050.00 255,879.00 23,400.00 B400.00 24 Income Sunmary (a) 7,500.00 D) 76,500.00 67,500.00 76,500.00 25 2,880.00 (e) 3,870.00 2,880.00 3870.00 26 Sales 472,626.00 47 626.00 7 Sales Returas and Allowances 28 Rent Revenue 13,050.00 () 1,980.00 15,030.00 3,960.00 3,960.00 29 Parchases 112,500.00 112,500.00 30 Parchses Retums and Allowances 1,260.00 1260.00 31 Parchases Dkounts 1,620 00 1,620.00 32 Frdght-n 1,890.00 1,890.00 33 Wages Expense 34 Adwertlng Bxpense 112,500.00 3,150.00 115,650.00 11,700.00 11,700.00 35 Supples Expense 36 Phone Expense 37 udibes Expense 38 Insurance Expeme 39 Depr. Expense-Buklng 40 Depr. Expense-StoreEqupnent 41 Rent Expense 4,230.00 4,230.00 1,215.00 1,215.00 7,200.00 7,00.00 1,440.00 1,440.00 1 11,250.00 4,500.00 11,50.00 4,500.00 54,000.00 54,000.00 42 882,495.00 882,495.00 181,260.00 181,260.00 983,745.00 983745.00 43 410,965.00 559,836.00 44 Het lacome 148,851.00 45
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.
CLOSING ENTRIES Using the spreadsheet and partially completed Income Summary Account on page 605 prepare the following:
1. Closing entries for Balloons and Baubbles in a general journal.
2. A post-closing
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