The September 30, 2021 adjusted trial balance section of Premier Pet Spa's work sheet is below 1 2 101 3 106 126 5 127 6 128 7 163 8 167 9 201 10 236 11 301 12 303 13 403 14 600 234 15 652 16 655 17 660 18 677 19 680 20 684 21 22 23 637 24 131 25 622 26 164 27 623 28 168 29 30 31 32 33 34 Premier Pet Spa Work Sheet For the Quarter Ended September 30, 2021 Account Titles Cash Accounts Receivable Supplies Prepaid Advertising Prepaid Insurance Equipment Furniture Accounts Payable Unearned Service Revenue J. Smith-Capital J. Smith-Draws Service Revenue Advertising Expense Office Expense Rent Expense Repairs and Maintenance Expense Supplies Expense Utilities Expense Wages Expense Totals Insurance Expense Prepaid Rent Depr. Exp-Equipment Accum. Depr.-Equipment Depr. Exp-Furniture Accum. Depr.-Furniture Adjusted Trial Balance Dr. 5,946 1,175 1,700 200 2,400 14,500 2,800 3,500 400 1,237 5,400 170 1,750 697 3,900 2,400 1,800 585 90 50,650 Cr 12345678 3 750 9 2,600 10 31,000 11 12 15,625 13 14 15 16 17 18 19 20 21 22 23 24 25 585 26 27 90 28 29 30 50,650 31 32 33 34
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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