Camilia Communications reported the following figures from its adjusted trial balance for its first year of business, which ended on July 31, 2018: Cash ₱2,900 Cost of Goods Sold ₱ 18,700 Selling Expenses 1,400 Equipment, net 9,500 Accounts Payable 4,300 Accrued Liabilities 1,800 Common Stock 4,365 Net Sales Revenue 29,200 Notes Payable, long-term 500 Accounts Receivable 3,200 Merchandise Inventory 1,100 Interest Expense 65 Administrative Expenses 3,300 ANSWER THE FOLLOWING: 1. Prepare Camilia Communications‘s multi-step income statement for the year ended July 31, 2018. 2. Prepare Camilia Communications‘s statement of retained earnings for the year ended July 31, 2018. Assume that there were no dividends declared during the year and that the business began on August 1, 2017. 3. Prepare Camilia Communications‘s classified balance sheet at July 31, 2018. Use the report format.
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.
Camilia Communications reported the following figures from its adjusted
Cash ₱2,900 Cost of Goods Sold ₱ 18,700
Selling Expenses 1,400 Equipment, net 9,500
Accounts Payable 4,300 Accrued Liabilities 1,800
Common Stock 4,365 Net Sales Revenue 29,200
Notes Payable, long-term 500 Accounts Receivable 3,200
Merchandise Inventory 1,100 Interest Expense 65
Administrative Expenses 3,300
ANSWER THE FOLLOWING:
1. Prepare Camilia Communications‘s multi-step income statement for the year ended July 31, 2018.
2. Prepare Camilia Communications‘s statement of
3. Prepare Camilia Communications‘s classified balance sheet at July 31, 2018. Use the report format.
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