Outback Expeditions provides guided tours in scenic mountainous areas. After the first 11 months of operations in 2024, Outback has the following account balances. Accounta Cash Accounts Receivable Prepaid Insurance Equipment Land Accounts Payable Notes Payable Common Stock Retained Earnings Dividends Service Revenue OUTBACK EXPEDITIONS Trial Balance November 30, 2024 Advertising Expense Salaries Expense Rent Expense Totals December 1 December 5 December 8 Debita $12,200 6,000 1,900. 25,600 192,500 Credits Required: 1. Record each transaction. 4,800 51,500 150,000 15,600 76,500 The following transactions occur during December 2024: 6,500 12,500 29,800 11,400 $298,400 $298,400 Pay rent for mountain lodges for the month of December, $2,400. Provide guided tour to customers in Grand Teton National Park for cash, $4,300. Borrow from a local bank by signing a note payable, $25,000. The note is due in one year with a 6 interest rate. December 12 Receive cash from customers as payment for a guided tour that occurred on November 28, $5,000. December 13 Issue additional shares of common stock for cash, $35,000. December 15 Pay employee salaries for the first half of the month, $2,700. December 17 Purchase advertising on several local radio stations to be aired during the following two weeks, $2,500. December 22 Provide guided tour to customers in Yellowstone National Park on account, $4,700. December 23 One of the customers from the December 22 tour claims to have seen the legendary creature Bigfoot. The company believes this exciting news will create additional revenue of $35,000 next year. December 26 Purchase several pieces of hiking equipment to give customers a more enjoyable adventure, such as night- vision goggles, GPS, long-range binoculars, and video cameras, for cash, $30,000. December 28 Pay cash on accounts payable, $3,000. December 31 Pay dividends to stockholders, $3,500. 2. & 3. Post each transaction to the appropriate T-accounts and calculate the balance of each account at December 31, 2024. (Hint: Be sure to include the balance at the beginning of December in each T-account.) 4. Prepare a trial balance as of December 31, 2024.
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.
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