The trail balance columns of the worksheet for Khareef Company at September 30, 2019, are as follows: Khareef Company Worksheet For the month ended September 30, 2019 Trial Balance Account Titles Dr. Cr. Cash 15,000 Accounts Receivable 9,700 Supplies 5,500 Accounts Payable 3,700 Unearned Service Revenue 8,200 Capital 20,000 Service Revenue 1,700 Salaries Expense 2,500 Utilities Expense 900 Total 33,600 33,600 Additional Information: The available supplies on hand is $2,000 Rendered service of $10,000 but not recorded. Accrued interest is $150 Accrued salaries are $500 Utilities expense of $600 is not recorded Paid the amount due of $700 on account Instructions: Enter the trail balance on a worksheet and complete it.
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 trail balance columns of the worksheet for Khareef Company at September 30, 2019, are as follows:
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Khareef Company |
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Worksheet |
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For the month ended September 30, 2019 |
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Account Titles |
Dr. |
Cr. |
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Cash |
15,000 |
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Accounts Receivable |
9,700 |
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Supplies |
5,500 |
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Accounts Payable |
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3,700 |
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Unearned Service Revenue |
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8,200 |
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Capital |
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20,000 |
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Service Revenue |
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1,700 |
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Salaries Expense |
2,500 |
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Utilities Expense |
900 |
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Total |
33,600 |
33,600 |
Additional Information:
- The available supplies on hand is $2,000
- Rendered service of $10,000 but not recorded.
- Accrued interest is $150
- Accrued salaries are $500
- Utilities expense of $600 is not recorded
- Paid the amount due of $700 on account
Instructions: Enter the trail balance on a worksheet and complete it.
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