roject wVU MIX Username:o Shareholders' Equity Account Liabilities Assets Yes Do you intend to major in one of the College of Business and Economic's majors? Amount Account Amount Account Amount $ 111.000 Stock 2.406 Retained Earnings $ 106.000 Notes Payable Balance Sheet at April 30: S 83,536 Cash 5,500 Inventory S30 interest Payable 132,000 Equipment (1.100) Accumulated Depreciation 33.000 inventory 3.300 Prepaid Insurance 3.300) Cash Amounts in US $ Per Unit ring May, its second month of business, Karry no Key, Inc 5/1 Total 33,000 Accounts Payable Purchased 300 karaoke machines on account Paid for six months of insurance in advance; coverage that begins May 1 33,000 3,300 110.00 $ 5/1 Sold 320 karaoke machines on account: Record the sale During 49,280 Sales Revenue 154.00 49,280 Accounts Receivable May (35.200) Cost of Goods Sold (35.200) Inventory 44352 Cash 110.00 Record the cost of the sale Collected cash from customers from sales made on account 44,352 During (44,352) Accounts Receivable May (19.800) Cash (1.080) Cash (550) Prepaid Insurance (1100) Accumulated Depreciation (19,800) Accounts Payable Paid for inventory purchased on account Declared and paid cash dividend to its shareholders Adjusted for insurance used during the month Adjusted for depreciation on equipment (hint refer to P1 for estimated ife of equipment) Adjusted for wages owed that will be paid in the first week of June Adjusted for interest owed on the 6%, 3-month bank loan interest and principal due on June 30 19,800 5/31 (1.080) Dividends 1,080 5/31 (SS0) insurance Expense (1,100) Depreciation Expense A1 A2 1,484 Wages Payable 530 Interest Payable (1,484) Wages Expense (530) Interest Expense 1484 A3 530 A4 Column Totals 244,486 121,744 122.742 Chart of Accounts: Accounts Payable Accounts Receivable Accumulated Depreciation Cash Cost of Goods Sold Depreciation Expense Dividends 32
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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