How to explain this in front of your teacher? Prepare an adjusted trial balance from the adjusted account balances; solve for the one missing account balance. Step 2 Adjusted Trail Balance Adjusted Trail Balance Particulars Debit ($) Credit ($) Accounts Payable 9000 Accounts Receivables 16032 Cash 20450 Common Stock 24000 Dividend 12000 Equipment 29000 Prepaid Insurance 9444 Land 34000 Notes Payables 48000 Retained Earnings 31315 Insurance Expense 12689 Service Revenue 82500 Supplies 9700 Salaries Expenses 51500 Total 194815 194815 NOTE:- Dividend is $ 12000 being the difference in Debit and credit of Adjusted Trail Balance.
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.
How to explain this in front of your teacher?
Prepare an adjusted
Adjusted Trail Balance
Particulars Debit ($) Credit ($)
Accounts Payable 9000
Accounts Receivables 16032
Cash 20450
Common Stock 24000
Dividend 12000
Equipment 29000
Prepaid Insurance 9444
Land 34000
Notes Payables 48000
Insurance Expense 12689
Service Revenue 82500
Supplies 9700
Salaries Expenses 51500
Total 194815 194815
NOTE:- Dividend is $ 12000 being the difference in Debit and credit of Adjusted Trail Balance.
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