Interactive Consulting Ltd Adjusted Trial Balance As of September 30, 2020 Account Name Debit Credit Cash $ 9,750 Accounts Receivables $ 2,200 Supplies $ 1,250 Prepaid Rent (3600-800) $ 2,800 Prepaid Insurance (1500-125) $ 1,375 Equipment $ 9,000 Capital $ 17,000 Unearned Fees $ 1,200 Salaries Payable $ 120 Accounts Payables $ 1,000 Fees Earned (7800 +(3500-1200)) $ 10,100 Insurance Expense $ 125 Supplies Expense (2000-1250) $ 750 Salaries Expense $ 920 Advertisement expense $ 120 Utilities expense $ 330 Rent Expense $ 800 TOTAL $ 29,420 $ 29,420 1. Prepare the financial Statement for the month of September 2. Jornalize the closing entries and balnce off the ledger accounts 3.Prepare the post closing Trial 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.
| Interactive Consulting Ltd | ||
| Adjusted |
||
| As of September 30, 2020 | ||
| Account Name | Debit | Credit |
| Cash | $ 9,750 | |
| $ 2,200 | ||
| Supplies | $ 1,250 | |
| Prepaid Rent (3600-800) | $ 2,800 | |
| Prepaid Insurance (1500-125) | $ 1,375 | |
| Equipment | $ 9,000 | |
| Capital | $ 17,000 | |
| Unearned Fees | $ 1,200 | |
| Salaries Payable | $ 120 | |
| Accounts Payables | $ 1,000 | |
| Fees Earned (7800 +(3500-1200)) | $ 10,100 | |
| Insurance Expense | $ 125 | |
| Supplies Expense (2000-1250) | $ 750 | |
| Salaries Expense | $ 920 | |
| Advertisement expense | $ 120 | |
| Utilities expense | $ 330 | |
| Rent Expense | $ 800 | |
| TOTAL | $ 29,420 | $ 29,420 |
1. Prepare the financial Statement for the month of September
2. Jornalize the closing entries and balnce off the ledger accounts
3.Prepare the post closing Trial Balance
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