sing the Myla’s Motors accounts and their balances at the end of month (November 30, 2020) create a Trial Balance for the period. Equipment 53,500 Myla, capital 19,700 Accounts payable 13,400 Supplies 500 Unearned service revenue 8,000 Insurance expense 0 Salary expense 1,600 Supplies expense 0 Accounts Receivable 26,600 Service revenue 16,000 Depreciation expense 0 Salary payable 0 Cash 4,300 Prepaid Insurance 1,700 Myla, drawing 3,800 Accumulated depreciation 36,400 Utilities expense 1,500 Requirements: Expand the worksheet by introducing following adjustments: Depreciation on equipment, $1,100. Accrued salary expense, $600. Supplies on hand, $200 Prepaid insurance expired during November, $200. Unearned service revenue earned during November, $4,000. Accrued service revenue, $800. Journalize all adjustments and post them to the ledger. Create the Adjusted trial balance. What is the net income of Myla’s Motors for the given period? What accounting principles relate to the adjustments and how?
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.
sing the Myla’s Motors accounts and their balances at the end of month (November 30, 2020) create a
| Equipment | 53,500 | Myla, capital | 19,700 |
| Accounts payable | 13,400 | Supplies | 500 |
| Unearned service revenue | 8,000 | Insurance expense | 0 |
| Salary expense | 1,600 | Supplies expense | 0 |
| 26,600 | Service revenue | 16,000 | |
| 0 | Salary payable | 0 | |
| Cash | 4,300 | Prepaid Insurance | 1,700 |
| Myla, drawing | 3,800 | 36,400 | |
| Utilities expense | 1,500 |
Requirements:
- Expand the worksheet by introducing following adjustments:
Depreciation on equipment, $1,100.
Accrued salary expense, $600.
Supplies on hand, $200
Prepaid insurance expired during November, $200.
Unearned service revenue earned during November, $4,000.
Accrued service revenue, $800.
- Journalize all adjustments and post them to the ledger.
- Create the Adjusted trial balance.
- What is the net income of Myla’s Motors for the given period?
- What accounting principles relate to the adjustments and how?
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