A partial work sheet for Marge's Place is shown below. Prepare the following adjustments on this work sheet for the month ended June 30, 20--. Expired or used-up insurance, $450. Depreciation expense on equipment, $750 (Remember to credit the Accumulated Depreciation account for equipment, not Equipment). Wages accrued or earned since the last payday, $380 (owed and to be paid on the next payday). Supplies used, $110. If no amount is required, enter 0. Marge's Place Work Sheet For Month Ended June 30, 20-- TRIAL BALANCE ADJUSTMENTS ACCOUNT NAME DEBIT CREDIT DEBIT CREDIT 1 Cash 4,370 fill in the blank 1 fill in the blank 2 1 2 Supplies 250 fill in the blank 3 fill in the blank 4 2 3 Prepaid Insurance 1,800 fill in the blank 5 fill in the blank 6 3 4 Equipment 4,880 fill in the blank 7 fill in the blank 8 4 5 Accumulated Depreciation, Equipment 1,350 fill in the blank 9 fill in the blank 10 5 6 Accounts Payable 2,539 fill in the blank 11 fill in the blank 12 6 7 M. Benson, Capital 4,544 fill in the blank 13 fill in the blank 14 7 8 M. Benson, Drawing 2,000 fill in the blank 15 fill in the blank 16 8 9 Income from Services 6,937 fill in the blank 17 fill in the blank 18 9 10 Rent Expense 1,086 fill in the blank 19 fill in the blank 20 10 11 Supplies Expense 256 fill in the blank 21 fill in the blank 22 11 12 Wages Expense 660 fill in the blank 23 fill in the blank 24 12 13 Miscellaneous Expense 68 fill in the blank 25 fill in the blank 26 13 14 15,370 15,370 fill in the blank 27 fill in the blank 28 14 15 fill in the blank 30 fill in the blank 31 fill in the blank 32 fill in the blank 33 15 16 fill in the blank 35 fill in the blank 36 fill in the blank 37 fill in the blank 38 16 17 fill in the blank 40 fill in the blank 41 fill in the blank 42 fill in the blank 43 17 18 fill in the blank 44 fill in the blank 45 fill in the blank 46 fill in the blank 47 18
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.
A partial work sheet for Marge's Place is shown below.
- Expired or used-up insurance, $450.
Depreciation expense on equipment, $750 (Remember to credit theAccumulated Depreciation account for equipment, not Equipment).- Wages accrued or earned since the last payday, $380 (owed and to be paid on the next payday).
- Supplies used, $110.
If no amount is required, enter 0.
| Marge's Place | ||||||||||||
| Work Sheet | ||||||||||||
| For Month Ended June 30, 20-- | ||||||||||||
| ADJUSTMENTS | ||||||||||||
| ACCOUNT NAME | DEBIT | CREDIT | DEBIT | CREDIT | ||||||||
| 1 | Cash | 4,370 | fill in the blank 1 | fill in the blank 2 | 1 | |||||||
| 2 | Supplies | 250 | fill in the blank 3 | fill in the blank 4 | 2 | |||||||
| 3 | Prepaid Insurance | 1,800 | fill in the blank 5 | fill in the blank 6 | 3 | |||||||
| 4 | Equipment | 4,880 | fill in the blank 7 | fill in the blank 8 | 4 | |||||||
| 5 | Accumulated Depreciation, Equipment | 1,350 | fill in the blank 9 | fill in the blank 10 | 5 | |||||||
| 6 | Accounts Payable | 2,539 | fill in the blank 11 | fill in the blank 12 | 6 | |||||||
| 7 | M. Benson, Capital | 4,544 | fill in the blank 13 | fill in the blank 14 | 7 | |||||||
| 8 | M. Benson, Drawing | 2,000 | fill in the blank 15 | fill in the blank 16 | 8 | |||||||
| 9 | Income from Services | 6,937 | fill in the blank 17 | fill in the blank 18 | 9 | |||||||
| 10 | Rent Expense | 1,086 | fill in the blank 19 | fill in the blank 20 | 10 | |||||||
| 11 | Supplies Expense | 256 | fill in the blank 21 | fill in the blank 22 | 11 | |||||||
| 12 | Wages Expense | 660 | fill in the blank 23 | fill in the blank 24 | 12 | |||||||
| 13 | Miscellaneous Expense | 68 | fill in the blank 25 | fill in the blank 26 | 13 | |||||||
| 14 | 15,370 | 15,370 | fill in the blank 27 | fill in the blank 28 | 14 | |||||||
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| 18 | fill in the blank 44 | fill in the blank 45 | fill in the blank 46 | fill in the blank 47 | 18 |
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