The trial balance for Game Time on July 31 is as follows: Game Time Trial Balance July 31, 20-- Account Name Debit Credit Cash 14213 Supplies 746 Prepaid Insurance 1598 Equipment 19638 Accumulated Depreciation, Equipment 4338 Repair Equipment 2580 Accumulated Depreciation, Repair Equipment 1175 Accounts Payable 2770 B. Ryan, Capital 24449 B. Ryan, Drawing 3000 Game Fees 10062 Concession Fees 4860 Wages Expense 1899 Rent Expense 1635 Utilities Expense 1129 Repair Expense 1089 Miscellaneous Expense 127 47654 47654 Data for month-end adjustments are as follows: Expired or used-up insurance, $824. Depreciation expense on equipment, $1230. Depreciation expense on repair equipment, $415. Wages accrued or earned since the last payday, $810 (owed and to be paid on the next payday). Supplies used, $365. Required: 1. Complete a work sheet for the month. If no amount is required, enter 0. Game Time Work Sheet For Month Ended July 31, 20-- TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE INCOME STATEMENT BALANCE SHEET ACCOUNT NAME DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT 1 Cash 1 2 Supplies 2 3 Prepaid Insurance 3 4 Equipment 4 5 Accum. Depr., Equipment 5 6 Repair Equipment 6 7 Accum. Depr., Repair Equipment 7 8 Accounts Payable 8 9 B. Ryan, Capital 9 10 B. Ryan, Drawing 10 11 Game Fees 11 12 Concession Fees 12 13 Wages Expense 13 14 Rent Expense 14 15 Utilities Expense 15 16 Repair Expense 16 17 Miscellaneous Expense 17 18 18 19 Insurance Expense 19 20 Depreciation Expense, Equipment 20 21 Depreciation Expense, Repair Equipment 21 22 Wages Payable 22 23 Supplies Expense 23 24 24 25 Net Income 25 26 26 27 27 28 28 2. Journalize the adjusting entries. Journalize the adjustments in the order given in the question. GENERAL JOURNAL DATE DESCRIPTION DOC. NO. POST. REF. DEBIT CREDIT 20-- Adjusting Entries July. 31 July. 31 July. 31 July. 31 July. 31 3. Prepare an income statement. Game Time Income Statement For Month Ended July 31, 20-- Revenue: $ Total Revenue $ Expenses: $ Total Expenses Net Income $ Prepare a statement of owner's equity. Assume that no additional investments were made during July. If an amount is zero, enter "0". Game Time Statement of Owner's Equity For Month Ended July 31, 20-- $ $ Subtotal $ $ Prepare a balance sheet. Game Time Balance Sheet July 31, 20-- Assets $ $ $ Total Assets $ Liabilities $ Total Liabilities $ Owner's Equity Total Liabilities and Owner's Equity $
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
| Game Time | ||
| Trial Balance | ||
| July 31, 20-- | ||
| Account Name | Debit | Credit |
| Cash | 14213 | |
| Supplies | 746 | |
| Prepaid Insurance | 1598 | |
| Equipment | 19638 | |
| 4338 | ||
| Repair Equipment | 2580 | |
| Accumulated Depreciation, Repair Equipment | 1175 | |
| Accounts Payable | 2770 | |
| B. Ryan, Capital | 24449 | |
| B. Ryan, Drawing | 3000 | |
| Game Fees | 10062 | |
| Concession Fees | 4860 | |
| Wages Expense | 1899 | |
| Rent Expense | 1635 | |
| Utilities Expense | 1129 | |
| Repair Expense | 1089 | |
| Miscellaneous Expense | 127 | |
| 47654 | 47654 |
Data for month-end adjustments are as follows:
- Expired or used-up insurance, $824.
- Depreciation expense on equipment, $1230.
- Depreciation expense on repair equipment, $415.
- Wages accrued or earned since the last payday, $810 (owed and to be paid on the next payday).
- Supplies used, $365.
Required:
| Game Time | ||||||||||||
| Work Sheet | ||||||||||||
| For Month Ended July 31, 20-- | ||||||||||||
| TRIAL BALANCE | ADJUSTMENTS | ADJUSTED TRIAL BALANCE | INCOME STATEMENT | BALANCE SHEET | ||||||||
| ACCOUNT NAME | DEBIT | CREDIT | DEBIT | CREDIT | DEBIT | CREDIT | DEBIT | CREDIT | DEBIT | CREDIT | ||
| 1 | Cash | 1 | ||||||||||
| 2 | Supplies | 2 | ||||||||||
| 3 | Prepaid Insurance | 3 | ||||||||||
| 4 | Equipment | 4 | ||||||||||
| 5 | Accum. Depr., Equipment | 5 | ||||||||||
| 6 | Repair Equipment | 6 | ||||||||||
| 7 | Accum. Depr., Repair Equipment | 7 | ||||||||||
| 8 | Accounts Payable | 8 | ||||||||||
| 9 | B. Ryan, Capital | 9 | ||||||||||
| 10 | B. Ryan, Drawing | 10 | ||||||||||
| 11 | Game Fees | 11 | ||||||||||
| 12 | Concession Fees | 12 | ||||||||||
| 13 | Wages Expense | 13 | ||||||||||
| 14 | Rent Expense | 14 | ||||||||||
| 15 | Utilities Expense | 15 | ||||||||||
| 16 | Repair Expense | 16 | ||||||||||
| 17 | Miscellaneous Expense | 17 | ||||||||||
| 18 | 18 | |||||||||||
| 19 | Insurance Expense | 19 | ||||||||||
| 20 | Depreciation Expense, Equipment | 20 | ||||||||||
| 21 | Depreciation Expense, Repair Equipment | 21 | ||||||||||
| 22 | Wages Payable | 22 | ||||||||||
| 23 | Supplies Expense | 23 | ||||||||||
| 24 | 24 | |||||||||||
| 25 | Net Income | 25 | ||||||||||
| 26 | 26 | |||||||||||
| 27 | 27 | |||||||||||
| 28 | 28 |
| GENERAL JOURNAL | ||||||
|---|---|---|---|---|---|---|
| DATE | DESCRIPTION | DOC. NO. | POST. REF. | DEBIT | CREDIT | |
| 20-- | Adjusting Entries | |||||
| July. 31 | ||||||
| July. 31 | ||||||
| July. 31 | ||||||
| July. 31 | ||||||
| July. 31 | ||||||
| Game Time | ||
| Income Statement | ||
| For Month Ended July 31, 20-- | ||
| Revenue: | ||
| $ | ||
| Total Revenue | $ | |
| Expenses: | ||
| $ | ||
| Total Expenses | ||
| Net Income | $ |
| Game Time | ||
| Statement of Owner's Equity | ||
| For Month Ended July 31, 20-- | ||
| $ | ||
| $ | ||
| Subtotal | $ | |
| $ |
| Game Time | ||
| Balance Sheet | ||
| July 31, 20-- | ||
| Assets | ||
| $ | ||
| $ | ||
| $ | ||
| Total Assets | $ | |
| Liabilities | ||
| $ | ||
| Total Liabilities | $ | |
| Owner's Equity | ||
| Total Liabilities and Owner's Equity | $ |
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