ome recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 2,971 $ 2,907 Accounts payable $ 2,193 $ 2,680 Accounts receivable 4,727 5,701 Notes payable 1,790 2,196 12,638 Inventory 13,702 Other 98 115 Total $20,336 $ 22,310 Total $ 4,081 $ 4,991 $ 14,100 $16,860 Long-term debt Owners' equity Common stock 42,000 $42,000 $ and paid-in surplus Accumulated retained earnings 39,696 Fixed assets 15,694 Net plant and equipment $55,539 $ 81,237 Total $ 57,694 $ 81,696 Total assets $ 75,875 $103,547 Total liabilities and owners' equity 103,547 $ 75,875 $ SMOLIRA GOLF, INC. 2019 Income Statement 188,970 $ Sales 127,003 Cost of goods sold Depreciation 5,253 EBIT Interest paid $ 56,714 1,350 Taxable income Taxes $55,364 19,377 Net income $35,987 Dividends $ 11,985 24,002 Retained earnings Smolira Golf has 10,000 shares of common stock outst
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.
Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 2,971 $ 2,907 Accounts payable $ 2,193 $ 2,680 Accounts receivable 4,727 5,701 Notes payable 1,790 2,196 12,638 Inventory 13,702 Other 98 115 Total $20,336 $ 22,310 Total $ 4,081 $ 4,991 $ 14,100 $16,860 Long-term debt Owners' equity Common stock 42,000 $42,000 $ and paid-in surplus
SMOLIRA GOLF, INC. 2019 Income Statement 188,970 $ Sales 127,003 Cost of goods sold
times times Price-earnings ratio b. Price-sales ratio c. Dividends per share d. Market-to-book ratio times
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