Journalize the closing entries of the trial balance of Bramble Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year. BRAMBLE FASHION CENTER Trial Balance November 30, 2020 Debit Credit Cash $ 20,000 Accounts Receivable 28,000 Inventory 42,000 Supplies 6,000 Equipment 130,000 Accumulated Depreciation—Equipment $ 25,000 Notes Payable 50,000 Accounts Payable 51,800 Owner’s Capital 88,000 Owner’s Drawings 10,000 Sales Revenue 755,200 Sales Returns and Allowances 8,600 Cost of Goods Sold 497,000 Salaries and Wages Expense 139,500 Advertising Expense 24,000 Utilities Expense 13,500 Maintenance and Repairs Expense 11,500 Freight-out 16,400 Rent Expense 23,500 Totals $970,000 $970,000 Adjustment data: The trial balance of Bramble Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year. BRAMBLE FASHION CENTER Trial Balance November 30, 2020 Debit Credit Cash $ 20,000 Accounts Receivable 28,000 Inventory 42,000 Supplies 6,000 Equipment 130,000 Accumulated Depreciation—Equipment $ 25,000 Notes Payable 50,000 Accounts Payable 51,800 Owner’s Capital 88,000 Owner’s Drawings 10,000 Sales Revenue 755,200 Sales Returns and Allowances 8,600 Cost of Goods Sold 497,000 Salaries and Wages Expense 139,500 Advertising Expense 24,000 Utilities Expense 13,500 Maintenance and Repairs Expense 11,500 Freight-out 16,400 Rent Expense 23,500 Totals $970,000 $970,000 The adjustment data are supplies on hand totaled $2,000, depreciation is $11,100 on the equipment, interest of $7,200 is accrued on notes payable at November 30, and inventory actually on hand is $41,700.
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.
Journalize the closing entries of the
|
BRAMBLE FASHION CENTER
Trial Balance November 30, 2020 |
||||
|---|---|---|---|---|
|
Debit
|
Credit
|
|||
| Cash |
$ 20,000
|
|||
|
28,000
|
||||
| Inventory |
42,000
|
|||
| Supplies |
6,000
|
|||
| Equipment |
130,000
|
|||
| Accumulated |
$ 25,000
|
|||
| Notes Payable |
50,000
|
|||
| Accounts Payable |
51,800
|
|||
| Owner’s Capital |
88,000
|
|||
| Owner’s Drawings |
10,000
|
|||
| Sales Revenue |
755,200
|
|||
| Sales Returns and Allowances |
8,600
|
|||
| Cost of Goods Sold |
497,000
|
|||
| Salaries and Wages Expense |
139,500
|
|||
| Advertising Expense |
24,000
|
|||
| Utilities Expense |
13,500
|
|||
| Maintenance and Repairs Expense |
11,500
|
|||
| Freight-out |
16,400
|
|||
| Rent Expense |
23,500
|
|
||
| Totals |
$970,000
|
$970,000
|
Adjustment data:
The trial balance of Bramble Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year.
|
BRAMBLE FASHION CENTER
Trial Balance November 30, 2020 |
||||
|---|---|---|---|---|
|
Debit
|
Credit
|
|||
| Cash |
$ 20,000
|
|||
| Accounts Receivable |
28,000
|
|||
| Inventory |
42,000
|
|||
| Supplies |
6,000
|
|||
| Equipment |
130,000
|
|||
| Accumulated Depreciation—Equipment |
$ 25,000
|
|||
| Notes Payable |
50,000
|
|||
| Accounts Payable |
51,800
|
|||
| Owner’s Capital |
88,000
|
|||
| Owner’s Drawings |
10,000
|
|||
| Sales Revenue |
755,200
|
|||
| Sales Returns and Allowances |
8,600
|
|||
| Cost of Goods Sold |
497,000
|
|||
| Salaries and Wages Expense |
139,500
|
|||
| Advertising Expense |
24,000
|
|||
| Utilities Expense |
13,500
|
|||
| Maintenance and Repairs Expense |
11,500
|
|||
| Freight-out |
16,400
|
|||
| Rent Expense |
23,500
|
|
||
| Totals |
$970,000
|
$970,000
|
The adjustment data are supplies on hand totaled $2,000, depreciation is $11,100 on the equipment, interest of $7,200 is accrued on notes payable at November 30, and inventory actually on hand is $41,700.
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