к CYNTHIA ELMER, CPA Woksheet Decemter 31, 2018 Uradjusted Trial Balance Adjustments Adjusted Trial Balane Credk Aicount Names Income Statement Balanc Sheet Debit Crodit Debit Credt Debit Debit Crodit Debit Credit 7 Cash Accounts Rereivable - Office Supplies O Prepaid Rent Land 5 46, 900 $ 45,900 9.600 (n) 1 1,700 13,300 800 500 (h) 300 8,000 3.300 (a) 4,700 35,000 35,000 125,000 Building Accumulatec Depreciation-uilding Furniture Accumulated Depredation-Fumiture Accounts Payable Utilities Payable 123,000 1,150 (c) 1,150 28,000 23,000 2,000 (d) 2300 $ 3,500 3,500 710 710 a Salaries Payable Interest Payable Unearned Revenue Notes Payable 4,200 0 4,200 500 (g) 500 5.000 le) 1.300 3,700 15,000 15,000 Common Stock 118,000 118,00 Retained Eamings 118,090 118,090 Dividends 29,c00 21,000 Service Keverue Rent Expense Sal aries Experse Suppies Experse Ulties Espe se Depreciation Expense-Building 95,000 5,000 (e,h) 100,000 20,000 28,000 (a) 3,300 21,300 4,200 31,200 (b) 500 500 5,000 25,000 (c) 1,150 150 Depreciation Expense Furniture (d) 2,000 2000 Interest Exparse (a) 500 500 Total coc'sses 3 333,300 5 10,630 10,610
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.
Preparing a Worksheet and Closing entries
Cynthia Elmer, CPA, had the following partial worksheet:
Requirements
- Complete the Worksheet.
- Prepare the closing entries for Cynthia Elmer, CPA.
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