Post closing trial balance An accountant prepared the following post-closing trial balance La casa services co. Post closing trial balance March 31, 2019 Debit balances Credit balances Cash 10,700 Accounts receivable 23,750 Supplies 1,500 Equipment 105,820 Accumulated Depreciation- Equip. 35,310 Accounts payable. 12,840 Salaries payable 1,180 Unearned rent. 4,820 Sonya Flynn, Capital 87,620 175,040. 108,500 Prepare a corrected post closing trial balance. Assume that all accounts have normal balances and that the amount shown are correct .if the amount box does not require an entry , leave it blank. La casa services co. Post closing trial balance March 31, 2019 Debit balances Credit balances Cash Accounts receivable Supplies EquipmentAccumulated depreciation equipment Accounts payable Salaries payable Unearned rent Sonya Flynn Capital Totals
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.
Post closing
An accountant prepared the following post-closing trial balance
La casa services co.
Post closing trial balance
March 31, 2019
Debit balances Credit balances
Cash 10,700
Supplies 1,500
Equipment 105,820
Accumulated
Accounts payable. 12,840
Salaries payable 1,180
Unearned rent. 4,820
Sonya Flynn, Capital 87,620
175,040. 108,500
Prepare a corrected post closing trial balance. Assume that all accounts have normal balances and that the amount shown are correct .if the amount box does not require an entry , leave it blank.
La casa services co.
Post closing trial balance
March 31, 2019
Debit balances Credit balances
Cash
Accounts receivable
Supplies
EquipmentAccumulated depreciation equipment
Accounts payable
Salaries payable
Unearned rent Sonya Flynn Capital
Totals
820
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
