The trial balance before adjustment of Delightful Tours at the end of its first month of operations is presented below. DELIGTHFUL TOURS Trial Balance June 30, 2019 Debit Account Titles Credit Cash 30, 000 72, 000 Prepaid Insurance Office Equipment 18, 000 Buses Notes Payable 1, 400, 000 P. 620, 000 150, 000 700, 000 Unearned Fees Tariray, Capital Fees Earned Salaries Expense Advertising Expense Gas and Oil Expenses Balance 159, 000 90, 000 8, 000 11, 000 P1.629, 000 P1, 629, 000 lata: The insurance policy has a one-year term beginning June 1, 2019. The monthly depreciation is P 500 on office equipment and P 20, 000 on buses. Interest of P 7, 000 accrues on the notes payable each month. Deposits of P 15, 000 each were received for advanced tour reservation from 10 school Groups. At June 30 three of these deposits have been earned. Bus drivers are paid a combined total of P 4, 000 per da. At June 30, 3 days salaries are unpaid. A senior citizen's organization that had not made and advance deposit took a Canyon Tour on June 30 for P 12, 000. This group was not billed for the services rendered until July 3. 1. 2. 3. 4. 5. 6. cions: Journalize the adjusting entries at June 30, 2019 Post the adjusting entries to their respective accounts a. b. C. Prepare an adjusted trial balance
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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