A work sheet for the month ended June 30, 20-- for Juanita’s Consulting is shown. There were no additional investments made by the owner during the month. Juanita’s Consulting Worksheet For Month Ended June 30, 20-- 1 TRIAL BALANCE TRIAL BALANCE ADJUSTMENTS ADJUSTMENTS ADJUSTED TRIAL BALANCE ADJUSTED TRIAL BALANCE INCOME STATEMENT INCOME STATEMENT BALANCE SHEET BALANCE SHEET 2 ACCOUNT TITLE DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT 3 Cash 5,285.00 5,285.00 5,285.00 4 Accounts Receivable 1,075.00 1,075.00 1,075.00 5 Supplies 750.00 (a) 250.00 500.00 500.00 6 Prepaid Insurance 500.00 (b) 100.00 400.00 400.00 7 Office Equipment 2,200.00 2,200.00 2,200.00 8 Accumulated Depreciation-Office Equipment (d) 110.00 110.00 110.00 9 Accounts Payable 1,500.00 1,500.00 1,500.00 10 Wages Payable (c) 200.00 200.00 200.00 11 Juanita Alvarez, Capital 7,000.00 7,000.00 7,000.00 12 Juanita Alvarez, Drawing 800.00 800.00 800.00 13 Consulting Fees 4,204.00 4,204.00 4,204.00 14 Wages Expense 1,400.00 (c) 200.00 1,600.00 1,600.00 15 Advertising Expense 60.00 60.00 60.00 16 Rent Expense 500.00 500.00 500.00 17 Supplies Expense (a) 250.00 250.00 250.00 18 Phone Expense 46.00 46.00 46.00 19 Electricity Expense 39.00 39.00 39.00 20 Insurance Expense (b) 100.00 100.00 100.00 21 Gas and Oil Expense 28.00 28.00 28.00 22 Depreciation Expense-Office Equipment (d) 110.00 110.00 110.00 23 Miscellaneous Expense 21.00 21.00 21.00 24 total $12,704.00 $12,704.00 $660.00 $660.00 $13,014.00 $13,014.00 2,754.00 4,204.00 10,260.00 8,810.00 25 Net Income 1,450.00 1,450.00 26 $4,204.00 $4,204.00 $10,260.00 $10,260.00 Required: 1. Prepare an income statement. 2. Prepare a statement of owner’s equity. 3. Prepare a balance sheet.
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.
|
Juanita’s Consulting
|
|
Worksheet
|
|
For Month Ended June 30, 20--
|
|
1
|
|
|
TRIAL BALANCE
|
ADJUSTMENTS
|
ADJUSTMENTS
|
ADJUSTED TRIAL BALANCE
|
ADJUSTED TRIAL BALANCE
|
INCOME STATEMENT
|
INCOME STATEMENT
|
BALANCE SHEET
|
BALANCE SHEET
|
|
2
|
ACCOUNT TITLE
|
DEBIT
|
CREDIT
|
DEBIT
|
CREDIT
|
DEBIT
|
CREDIT
|
DEBIT
|
CREDIT
|
DEBIT
|
CREDIT
|
|
3
|
Cash
|
5,285.00
|
|
|
|
5,285.00
|
|
|
|
5,285.00
|
|
|
4
|
Accounts Receivable
|
1,075.00
|
|
|
|
1,075.00
|
|
|
|
1,075.00
|
|
|
5
|
Supplies
|
750.00
|
|
|
(a) 250.00
|
500.00
|
|
|
|
500.00
|
|
|
6
|
Prepaid Insurance
|
500.00
|
|
|
(b) 100.00
|
400.00
|
|
|
|
400.00
|
|
|
7
|
Office Equipment
|
2,200.00
|
|
|
|
2,200.00
|
|
|
|
2,200.00
|
|
|
8
|
|
|
|
|
(d) 110.00
|
|
110.00
|
|
|
|
110.00
|
|
9
|
Accounts Payable
|
|
1,500.00
|
|
|
|
1,500.00
|
|
|
|
1,500.00
|
|
10
|
Wages Payable
|
|
|
|
(c) 200.00
|
|
200.00
|
|
|
|
200.00
|
|
11
|
Juanita Alvarez, Capital
|
|
7,000.00
|
|
|
|
7,000.00
|
|
|
|
7,000.00
|
|
12
|
Juanita Alvarez, Drawing
|
800.00
|
|
|
|
800.00
|
|
|
|
800.00
|
|
|
13
|
Consulting Fees
|
|
4,204.00
|
|
|
|
4,204.00
|
|
4,204.00
|
|
|
|
14
|
Wages Expense
|
1,400.00
|
|
(c) 200.00
|
|
1,600.00
|
|
1,600.00
|
|
|
|
|
15
|
Advertising Expense
|
60.00
|
|
|
|
60.00
|
|
60.00
|
|
|
|
|
16
|
Rent Expense
|
500.00
|
|
|
|
500.00
|
|
500.00
|
|
|
|
|
17
|
Supplies Expense
|
|
|
(a) 250.00
|
|
250.00
|
|
250.00
|
|
|
|
|
18
|
Phone Expense
|
46.00
|
|
|
|
46.00
|
|
46.00
|
|
|
|
|
19
|
Electricity Expense
|
39.00
|
|
|
|
39.00
|
|
39.00
|
|
|
|
|
20
|
Insurance Expense
|
|
|
(b) 100.00
|
|
100.00
|
|
100.00
|
|
|
|
|
21
|
Gas and Oil Expense
|
28.00
|
|
|
|
28.00
|
|
28.00
|
|
|
|
|
22
|
Depreciation Expense-Office Equipment
|
|
|
(d) 110.00
|
|
110.00
|
|
110.00
|
|
|
|
|
23
|
Miscellaneous Expense
|
21.00
|
|
|
|
21.00
|
|
21.00
|
|
|
|
|
24
|
total
|
$12,704.00
|
$12,704.00
|
$660.00
|
$660.00
|
$13,014.00
|
$13,014.00
|
2,754.00
|
4,204.00
|
10,260.00
|
8,810.00
|
|
25
|
Net Income
|
|
|
|
|
|
|
1,450.00
|
|
|
1,450.00
|
|
26
|
|
|
|
|
|
|
|
$4,204.00
|
$4,204.00
|
$10,260.00
|
$10,260.00
|
| 1. | Prepare an income statement. |
| 2. | Prepare a statement of owner’s equity. |
| 3. | Prepare a balance sheet. |
| Labels | |
| Current Assets | |
| Current Liabilities | |
| Expenses | |
| For Month Ended June 30, 20-- | |
| June 30, 20-- | |
| Property, Plant, and Equipment | |
| Revenue |
account description are
Amount Descriptions Decrease in Capital Increase in Capital Juanita Alvarez, Capital, June 1, 20--Juanita Alvarez, Capital, June 30, 20--Net Income Net Loss Total Assets Total Expensesm Total Current Assets Total Current Liabilities Total Liabilities and Owner’s Equity Withdrawals for June
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
