The following is the pre-closing trial balance for Christina Rehabilitation Hospital as of September 30, 2020. CHRISTINA REHABILITATION HOSPITAL Preclosing Trial Balance September 30, 2020 (000s omitted)
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 following is the pre-closing
| CHRISTINA REHABILITATION HOSPITAL | |||||||||
| Preclosing Trial Balance | |||||||||
| September 30, 2020 | |||||||||
| (000s omitted) | |||||||||
| Debits | Credits | ||||||||
| Cash and Cash Equivalents | $ | 50,235 | |||||||
| 61,880 | |||||||||
| Allowance for Uncollectible Receivables | $ | 16,580 | |||||||
| Inventory | 8,440 | ||||||||
| Prepaid Expenses | 6,640 | ||||||||
| Assets Limited as to Use—Investments | 49,470 | ||||||||
| Investments | 201,000 | ||||||||
| Pledges Receivable | 3,850 | ||||||||
| Discount on Pledges Receivable | 940 | ||||||||
| Land | 7,610 | ||||||||
| Buildings | 325,940 | ||||||||
| 145,960 | |||||||||
| Equipment | 262,160 | ||||||||
| Accumulated Depreciation—Equipment | 119,540 | ||||||||
| Accounts Payable | 20,760 | ||||||||
| Accrued Payables | 26,820 | ||||||||
| Interest Payable | 1,100 | ||||||||
| Bonds Payable | 176,000 | ||||||||
| Other Long-term Liabilities | 127,000 | ||||||||
| Net Assets—Without Donor Restrictions | 224,105 | ||||||||
| Net Assets—With Donor Restrictions—Programs | 78,900 | ||||||||
| Net Assets—With Donor Restrictions—Endowment | 27,410 | ||||||||
| Patient Service Revenue | 1,066,360 | ||||||||
| Contractual Adjustments | 552,480 | ||||||||
| Other Operating Revenue | 11,360 | ||||||||
| Contributions—With Donor Restrictions—Programs | 6,570 | ||||||||
| Contributions—With Donor Restrictions—Endowment | 160 | ||||||||
| Investment Income—Without Donor Restrictions | 7,600 | ||||||||
| Investment Income—With Donor Restrictions—Programs | 500 | ||||||||
| Unrealized Gain on Investments—With Donor Restrictions—Programs | 620 | ||||||||
| Salary Expense | 338,820 | ||||||||
| Supplies Expense | 140,910 | ||||||||
| Provision for Uncollectible Accounts | 17,330 | ||||||||
| Depreciation Expense | 25,380 | ||||||||
| Interest Expense | 5,160 | ||||||||
| Unrealized Loss on Investments—Without Donor Restrictions | 980 | ||||||||
| Total | $ | 2,058,285 | $ | 2,058,285 | |||||
- Prepare a
balance sheet as of September 30, 2020. The pledges and investments are both long-term. Not included on the trial balance is the fact that $16,500 of bonds will be due in 2021 and must be reclassified on the balance sheet. (Enter your answers in thousands.)
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