The unadjusted trial balance of Helena's Hire Cars is shown below (ignore GST). Helena's Hire Cars Trial Balance As at 30 June 2019 Account Debit Credit Cash at bank 18,140 21,340 Accounts receivable Office supplies 640 Prepaid advertising 3,880 Hire cars 93,600 Accumulated Depreciation - hire cars 39,400 10,800 2,260 Accounts payable Unearned hire fees Helena, Capital Helena, Drawings 68,340 20,600 Hire fees revenue 98,700 Wages expense Fuel and oil expense 50,620 10,680 219,500 219,500 Additional information a. Petrol purchased on credit for $680 and used during the last week in June has not been paid for or recorded. b. A physical count showed office supplies totalling $340 were still on hand at 30 June. c. Depreciation for 1 year on the hire cars is $12,400. d. Prepaid advertising has a balance of $600 at the end of the month. The balance in the Unearned Hire Fees account includes $1,800 received in May for hire services е. completed in June.
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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