Current Attempt in Progress The adjusted trial balance for Carla Vista Bowling Alley at December 31, 2020, contains the following accounts. Debits Credits Buildings $128,200 Owner’s Capital $117,400 Accounts Receivable 14,000 Accumulated Depreciation—Buildings 42,600 Prepaid Insurance 5,000 Accounts Payable 11,300 Cash 18,600 Notes Payable 97,000 Equipment 62,200 Accumulated Depreciation—Equipment 17,800 Land 66,600 Interest Payable 2,000 Insurance Expense 900 Service Revenue 17,000 Depreciation Expense 6,700 Interest Expense 2,900 $305,100 $305,100 (a) Prepare a classified balance sheet; assume that $29,200 of the note payable will be paid in 2021. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)
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.
|
Debits
|
Credits
|
|||||
| Buildings | $128,200 | Owner’s Capital | $117,400 | |||
| 14,000 | 42,600 | |||||
| Prepaid Insurance | 5,000 | Accounts Payable | 11,300 | |||
| Cash | 18,600 | Notes Payable | 97,000 | |||
| Equipment | 62,200 | Accumulated Depreciation—Equipment | 17,800 | |||
| Land | 66,600 | Interest Payable | 2,000 | |||
| Insurance Expense | 900 | Service Revenue | 17,000 | |||
| Depreciation Expense | 6,700 | |||||
| Interest Expense | 2,900 | |||||
| $305,100 |
$305,100
|
(a)
Prepare a classified
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
