sydney Stables Inc. was established on April 1, 2020. The company provides stables, care for animals, and grounds for riding and showing horses. You have been hired as the new accountant. The below transactions for April 2020 are provided: a )Received contributions from five investors of $60,000 in cash ($12,000 each), a barn valued at $ 100,000, and land valued at $90,000. Each investor received 3,000 shares. B)Built a small barn for $62,000 The company paid half the amount in cash on April 1 2020, and sianed a three-year note payable for the balance. C)Provided animal care services to customers, ail on credit, for $35,260. D)Rented stables to customers who cared for their.own animals. and received cash payment of $ 13,200. E)Received from a customer $2,400 te board her horse in April May, and June (record as deferred revenue), F)Purchased hay and feed supplies on account for $3,180 to be used in the summer. G) Paid $1,240 in cash for water milities expense incured in the month. H)Paid $2,700 on accouts payable for previous purchases. I)Received $10,000 from customers on accounts receivable. J)Paid $6,000 in wages to emplayees who worked during the month. K)Purchased a one-year insurance policy for $3,600 at the end ofthe month. L)Received an electric utility bill for $ 1,800 for usage in April: the bill will be paid in May. M) Paid $500 cash dividend to ench of the investors at the end of the month. You must complete the following tasks below for the month of April in the Excel workbook provided. Required: Part.1. Prepare a trial balance. Part 2. Prepare a statement of earnings, a statement of shareholders equity and a statement of financial position for the for the month ended April 30, 2020
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.
sydney Stables Inc. was established on April 1, 2020. The company provides stables, care for animals, and
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