Huang Company's reporting year-end is December 31. Below are the unadjusted and adjusted trial balances for December 31, 2024 Account Title Cash Accounts receivable Prepaid rent Supplies Inventory Notes receivable Interest receivable office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable. Interest payable Deferred rent revenue Common stock Retained earnings Sales revenue Rent revenue Interest revenue Cost of goods sold Salaries and vages expense Rent expense Depreciation expense Supplies expense Interest expense Advertising expense Totals Unadjusted View transaction list Debits $ 53,000 38,000 2,075 1,575 63,000 33,000 0 48,000 Credits $ 14,700 37,000 53,000 0 2,600 49,000 29,600 241,000 10,000 0 129,000 47,700 11,225 0 1,325 5,700 3,300 $436,900 $436,900 Adjusted Debits $ 53,000 38,000 1,200 800 63,000 33,000 1,650 48,000 129,000 54,200 12,100 6,800 2,100 Credits $ 21,500 37,000 6,500 53,000 2,800 0 49,000 29,600 241,000 12,600 1,650 8,500 3,300 $454,650 $ 454,650 Required: Prepare the adjusting journal entries that were recorded on December 31, 2024, Note: If no entry is required for a particular event, select "No journal entry required" in the first account field. Check my work
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.
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