he adjusted trial balance for Midtown Repair Company follows: Midtown Repair Company Adjusted Trial Balance December 31, 2017 Cash. $95,600 Accounts Receivable 50,000 Prepaid Insurance 16,000 Prepaid Rent 4,000 Equipment 170,000 Accumulated Depr-Equipment $57,000 Accounts Payable 52,000 Long-Term Note Payable 63,000 C. Trout, Capital 178,500 C. Trout, Withdrawals 30,000 Repair Service Revenue 188,300 Depreciation Expense 28,500 Rent Expense 48,000 Utilities Expense 5,700 Insurance Expense 6,000 Wage Expense 85,000 Totals 538,800 538,800 Prepare the closing entries for Midtown Repair Company on the the general journal. Omit explanations. What is the balance of C. Trout’s capital account after the closing entries are posted?
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.
he adjusted
Midtown Repair Company
Adjusted Trial Balance
December 31, 2017
Cash. $95,600
Accounts Receivable 50,000
Prepaid Insurance 16,000
Prepaid Rent 4,000
Equipment 170,000
Accumulated Depr-Equipment $57,000
Accounts Payable 52,000
Long-Term Note Payable 63,000
C. Trout, Capital 178,500
C. Trout, Withdrawals 30,000
Repair Service Revenue 188,300
Rent Expense 48,000
Utilities Expense 5,700
Insurance Expense 6,000
Wage Expense 85,000
Totals 538,800 538,800
Prepare the closing entries for Midtown Repair Company on the the general journal. Omit explanations.
What is the balance of C. Trout’s capital account after the closing entries are posted?
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