Use the following information in the adjusted trial balance for D-Cole Company to answer the following questions: D-Cole Company Adjusted Trial Balance For the Year ended December 31, 2024 Debit Credit Cash 7,400 Supplies 2,000 Accounts Receivable 2,100 Prepaid Rent - Equipment 14,250 Accumulated Depreciation 3,995 Accounts Payable 1,800 Notes Payable 950 Unearned Fees 550 Retained Earnings 12,040 Dividends 400 Fees Earned 12,800 Wages Expense 2,500 Rent Expense 2,250 Supplies Expense - Utilities Expense 900 Depreciation Expense 250 Miscellaneous Expense 85 Totals 32,135 32,135 1. Determine the net income (loss) for the period. 2.Crate the income statement 3. Determine the Retained Earnings account ending balance for the period.
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 information in the adjusted |
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| the following questions: | |||
| D-Cole Company | |||
| Adjusted Trial Balance | |||
| For the Year ended December 31, 2024 | |||
| Debit | Credit | ||
| Cash | 7,400 | ||
| Supplies | 2,000 | ||
| Accounts Receivable | 2,100 | ||
| Prepaid Rent | - | ||
| Equipment | 14,250 | ||
| 3,995 | |||
| Accounts Payable | 1,800 | ||
| Notes Payable | 950 | ||
| Unearned Fees | 550 | ||
| 12,040 | |||
| Dividends | 400 | ||
| Fees Earned | 12,800 | ||
| Wages Expense | 2,500 | ||
| Rent Expense | 2,250 | ||
| Supplies Expense | - | ||
| Utilities Expense | 900 | ||
| Depreciation Expense | 250 | ||
| Miscellaneous Expense | 85 | ||
| Totals | 32,135 | 32,135 |
| 1. Determine the net income (loss) for the period. | |||||
| 2.Crate the income statement | |||||
| 3. Determine the Retained Earnings account ending balance for the period. | |||||
| 4Using this information , make the closing entries from the adjusted trial balance. | |||||
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5 .Create D-Cole Company's Balance Sheet. |
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6.Create the post closing trial balance |
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| 4Using this information , make the closing entries from the adjusted |
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5. create the company's balance sheet |
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6. Create the post-closing trial balance |
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