The trial balance for Reynaldo Gulane Cleaners appears as follows: Reynaldo Gulane Cleaners Trial Balance Sept. 30, 2015 P 117,880 264,940 34,000 73,740 180,000 1.850,000 Cash Accounts Receivable Prepaid Insurance Cleaning Supplies Land Bulding P 456.000 204,000 16,000 1,100,000 565,600 Accumulated Depreciation-Building Accounts Payable Uneamed Cleaning Revenues Mortgage Payable Gulane, Capital Gulane, Withdrawals Cleaning Revenues Salaries Expense Cleaning Equipment Rental Expense Delivery Truck Expense Interest Expense Other Expenses 100,000 1,576,340 1,013,300 60,000 43,740 110,000 70,340 P3,917,940 P3,917,940 The following information is also available: A review of insurance policies showed that P6,800 is unexpired at the year-end. An inventory of cleaning supplies showed P12,440 on hand. E Estimated depreciation on the building for the year is P128,000. Accrued interest on the mortgage payable is P10,000. On Sept. 1, the entity signed a contract, effective immediately, with Davao City Hospital to dry clean, for a fixed monthly charge of P4,000, the uniforms used by doctors in surgery. The haspital paid for four months' service in advance. Salaries are paid on Saturdays. The weekly payroll is P25,200. Assume that Sept. 30 falls on a Thursday and the entity has a six-day pay week. Required: for each of the above situations, show the accounts affected, the amount of the adstment (using a+ or - to indicate an increase or decrease), and the balance of the ount after the adjustment.
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.
Make a 10 column worksheet.
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