key insurance Agency was organized on September 1, 2015. Assume that the accounts are closed and financial statements prepared each month. The company occupies rented office space but owns office equipment estimated to have a useful life of 10 years from date of acquisition, Sep 1. The unadjusted trial balance of key Insurance Agency at November 30, is shown below. Cash………………………………………………………………………………………..$3,750 Accounts receivable………………………………………………………………….1,210 Office equipment………………………………………………………………………4,800 Accumulated depreciation: office equipment……………………………………………………………$ 80 Accounts payable……………………………………………………………………………………………………… 1,640 Jane carl, capital………………………………………………………………………………………………………. 7,490 Jane Carl, drawing……………………………………………………………………..500 Commissions earned……………………………………………………………………………………………… 6,220 Advertising expense………………………………………………………………….800 Salaries expense………………………………………………………………………..3,600 Rent expense……………………………………………………………………………..770 ______ __________ $15,430 $15,430 Prepare the adjusting journal entry to record depreciation of the office equipment for the month of November. Prepare an adjusted trial balance at November 30,2015 Prepare an income statement and a statement of owners equity for the month ended November 30, 2015. And a balance sheet in report.
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.
Question: key insurance Agency was organized on September 1, 2015. Assume that the accounts are closed and financial statements prepared each month. The company occupies rented office space but owns office equipment estimated to have a useful life of 10 years from date of acquisition, Sep 1. The unadjusted
Cash………………………………………………………………………………………..$3,750
Office equipment………………………………………………………………………4,800
Accounts payable……………………………………………………………………………………………………… 1,640
Jane carl, capital………………………………………………………………………………………………………. 7,490
Jane Carl, drawing……………………………………………………………………..500
Commissions earned……………………………………………………………………………………………… 6,220
Advertising expense………………………………………………………………….800
Salaries expense………………………………………………………………………..3,600
Rent expense……………………………………………………………………………..770
______ __________
$15,430 $15,430
Prepare the
Prepare an adjusted trial balance at November 30,2015
Prepare an income statement and a statement of owners equity for the month ended November 30, 2015. And a balance sheet in report.
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