Reconstruct an adjusted trial balance for the company, from the information presented in the specified financial statement. (Amounts in millions) 2020 ASSETS Current assets: Cash and cash equivalents $ 9,465 $ Receivables, net 6,284 Inventories 44,435 Prepaid expenses and other 1,622 Total current assets 61,806 Property and equipment, net 105,208 Operating lease right-of-use assets 17,424 — Finance lease right-of-use assets, net 4,417 — Property under capital lease and financing obligations, net — Goodwill 31,073 Other long-term assets 16,567 Total assets $ 236,495 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings $ 575 Accounts payable 46,973 Accrued liabilities 22,296 Accrued income taxes 280 Long-term debt due within one year 5,362 Operating lease obligations due within one year 1,793 Finance lease obligations due within one year 511 Capital lease and financing obligations due within one year — Total current liabilities 77,790 Long-term debt 43,714 Long-term operating lease obligations 16,171 — Long-term finance lease obligations 4,307 — Long-term capital lease and financing obligations — Deferred income taxes and other 12,961 Commitments and contingencies Equity: Common stock 284 Capital in excess of par value 3,247 Retained earnings 83,943 Accumulated other comprehensive loss (12,805 ) Total Walmart shareholders' equity 74,669 Noncontrolling interest 6,883 Total equity 81,552 Total liabilities and equity $ 236,495
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.
Reconstruct an adjusted
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(Amounts in millions)
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2020
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ASSETS
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Current assets:
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Cash and cash equivalents
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$
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9,465
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$
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Receivables, net
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6,284
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Inventories
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44,435
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Prepaid expenses and other
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1,622
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Total current assets
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61,806
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Property and equipment, net
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105,208
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Operating lease right-of-use assets
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17,424
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—
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Finance lease right-of-use assets, net
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4,417
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—
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Property under capital lease and financing obligations, net
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—
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31,073
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Other long-term assets
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16,567
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Total assets
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$
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236,495
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LIABILITIES AND EQUITY
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Current liabilities:
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Short-term borrowings
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$
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575
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Accounts payable
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46,973
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Accrued liabilities
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22,296
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Accrued income taxes
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280
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Long-term debt due within one year
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5,362
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Operating lease obligations due within one year
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1,793
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Finance lease obligations due within one year
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511
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Capital lease and financing obligations due within one year
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—
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Total current liabilities
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77,790
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Long-term debt
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43,714
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Long-term operating lease obligations
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16,171
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—
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Long-term finance lease obligations
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4,307
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—
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Long-term capital lease and financing obligations
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—
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12,961
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Commitments and contingencies
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Equity:
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Common stock
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284
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Capital in excess of par value
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3,247
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83,943
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Accumulated other comprehensive loss
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(12,805
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)
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Total Walmart shareholders' equity
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74,669
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Noncontrolling interest
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6,883
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Total equity
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81,552
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Total liabilities and equity
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$
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236,495
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