The adjusted trial balance of Marineland Travel Designers at December 31, 20X6, follows. MARINELAND TRAVEL DESIGNERS Adjusted Trial Balance December 31, 20X6 Cash 1,320 Accounts receivable 4,920 Supplies 2,300 Prepaid rent 1,600 Office equipment 20,180 Accumulated depreciation—office equipment Rs. 4,350 Office furniture 37,710 Accumulated depreciation—office furniture 4,870 Accounts payable 4,740 Interest payable 830 Unearned service revenue 620 Note payable 13,500 Ken Sorley, capital 26,090 Ken Sorley, drawings 29,000 Service revenue 120,910 Depreciation expense—office equipment 6,680 Depreciation expense—office furniture 2,370 Salary expense 39,900 Rent expense 17,400 Interest expense 3,100 Utilities expense 2,670 Insurance expense 3,810 Supplies expense 2,950 Total 175, 910 175,910 Find out the following ratios Profitability
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.
The adjusted
MARINELAND TRAVEL DESIGNERS
Adjusted Trial Balance December 31, 20X6
|
Cash |
1,320 |
|
|
Accounts receivable |
4,920 |
|
|
Supplies |
2,300 |
|
|
Prepaid rent |
1,600 |
|
|
Office equipment |
20,180 |
|
|
Accumulated |
|
Rs. 4,350 |
|
Office furniture |
37,710 |
|
|
Accumulated depreciation—office furniture |
|
4,870 |
|
Accounts payable |
|
4,740 |
|
Interest payable |
|
830 |
|
Unearned service revenue |
|
620 |
|
Note payable |
|
13,500 |
|
Ken Sorley, capital |
|
26,090 |
|
Ken Sorley, drawings |
29,000 |
|
|
Service revenue |
|
120,910 |
|
Depreciation expense—office equipment |
6,680 |
|
|
Depreciation expense—office furniture |
2,370 |
|
|
Salary expense |
39,900 |
|
|
Rent expense |
17,400 |
|
|
Interest expense |
3,100 |
|
|
Utilities expense |
2,670 |
|
|
Insurance expense |
3,810 |
|
|
Supplies expense |
2,950 |
|
|
Total |
175, 910 |
175,910 |
Find out the following ratios
- Profitability
Step by step
Solved in 2 steps with 2 images
