Use the following data from Burt Co., taken from the ledger after adjustment on December 31 the end of the fiscal year. Accounts Payable $97,200 Accounts Receivable 64,300 Accumulated Depreciation—Office Equipment 72,750 Accumulated Depreciation—Store Equipment 162,100 Administrative Expenses 56,500 Cash 53,000 Cost of Merchandise Sold 121,700 Interest Expense 12,000 Maeve Burt, Capital 81,750 Maeve Burt, Drawing 52,000 Merchandise Inventory 93,250 Note Payable (due in two years) 154,000 Office Equipment 149,750 Prepaid Insurance 6,500 Rent Revenue 17,500 Salaries Payable 28,700 Sales 365,500 Selling Expenses 41,500 Store Equipment 325,000 Supplies 4,000 a. Prepare a single-step income statement from the above data. b. Prepare a statement of owner's equity from the above data. c Prepare a balance sheet in report form from the above data.
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 following data from Burt Co., taken from the ledger after adjustment on December 31 the end of the fiscal year.
| Accounts Payable |
$97,200
|
| Accounts Receivable |
64,300
|
|
72,750
|
|
| Accumulated Depreciation—Store Equipment |
162,100
|
| Administrative Expenses |
56,500
|
| Cash |
53,000
|
| Cost of Merchandise Sold |
121,700
|
| Interest Expense |
12,000
|
| Maeve Burt, Capital |
81,750
|
| Maeve Burt, Drawing |
52,000
|
| Merchandise Inventory |
93,250
|
| Note Payable (due in two years) |
154,000
|
| Office Equipment |
149,750
|
| Prepaid Insurance |
6,500
|
| Rent Revenue |
17,500
|
| Salaries Payable |
28,700
|
| Sales |
365,500
|
| Selling Expenses |
41,500
|
| Store Equipment |
325,000
|
| Supplies |
4,000
|
a. Prepare a single-step income statement from the above data.
b. Prepare a statement of owner's equity from the above data.
c Prepare a balance sheet in report form from the above data.
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