Use the adjusted trial balance for Stockton Company to answer the question that follow. Stockton Company Adjusted Trial Balance December 31 Stockton Company Adjusted Trial Balance December 31 Cash Debit 6,530 Accounts Receivable Debit 2,100 Prepaid Expenses Debit 700 Equipment Debit 13,700 Accumulated Depreciation Credit 1,100 Accounts Payable 1,900. Notes Payable Credit 4,300 Bob Steely, Capital Credit 12,940 Bob Steely, Drawing Debit 790 Fees Earned Credit 9,250 Wages Expense Debit 2,500 Rent Expense Debit 1,960 Utilities Expense Debit 775 Depreciation Expense Debit 250 Miscellaneous Expense Debit 185 Totals Debit 29,490. Credit 29,490 Determine the total liabilities for the period. a.$4,300 b.$1,900 c.$6,200 d.$20,240
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.
Use the adjusted
Stockton Company
Adjusted Trial Balance
December 31
Stockton Company
Adjusted Trial Balance
December 31
Cash Debit 6,530
Prepaid Expenses Debit 700
Equipment Debit 13,700
Accounts Payable 1,900.
Notes Payable Credit 4,300
Bob Steely, Capital Credit 12,940
Bob Steely, Drawing Debit 790
Fees Earned Credit 9,250
Wages Expense Debit 2,500
Rent Expense Debit 1,960
Utilities Expense Debit 775
Depreciation Expense Debit 250
Miscellaneous Expense Debit 185
Totals Debit 29,490. Credit 29,490
Determine the total liabilities for the period.
a.$4,300
b.$1,900
c.$6,200
d.$20,240
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