Use the information from the Adjusted Trial Balance and Financial Statement templates provided in the module under Test 2 information you completed to answer questions 36 - 50. (Also copied below.) For Question 36, how much revenue should be recorded on the Income Statement? Elliptical Consulting Adjusted Trial Balance For the Year Ended June 30, 2019 Account Title Debit Credit Cash 27,000 Accounts Receivable 53,500 Supplies 900 Office Equipment 30,500 Accumulated Depreciation – Office Equipment 6,000 Accounts Payable 3,300 Salaries Payable 375 Jayson Neese, Capital 82,200 Jayson Neese, Drawing 2,000 Fees Earned 60,000 Salary Expense 32,375 Supplies Expense 2,100 Depreciation Expense 1,500 Miscellaneous Expense 2,000 Totals 151,875 151,875 Notice that the accounts are listed in order of the accounting equation: Assets = Liabilities + Owner’s Equity + (Rev. – Exp.). The accounts are NOT listed alphabetically Group of answer choices On the Statement of Owner's Equity for Elliptical Consulting, Jayson Neese's capital account has a balance of $82,200 as the first number on the Statement of Owner's Equity. What amount does this represent? Group of answer choices the beginning balance in Neese's capital account (owner's equity or net worth) before any increases or decrease to the capital account for the accounting period are added or subtracted the amount of profit Elliptical Consulting made for the year the amount of revenue earned for the year the ending balance in Neese's capital account (owner's equity or net worth)
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 information from the Adjusted
For Question 36, how much revenue should be recorded on the Income Statement?
Elliptical Consulting
Adjusted Trial Balance
For the Year Ended June 30, 2019
|
Account Title |
Debit |
Credit |
|
Cash |
27,000 |
|
|
|
53,500 |
|
|
Supplies |
900 |
|
|
Office Equipment |
30,500 |
|
|
|
|
6,000 |
|
Accounts Payable |
|
3,300 |
|
Salaries Payable |
|
375 |
|
Jayson Neese, Capital |
|
82,200 |
|
Jayson Neese, Drawing |
2,000 |
|
|
Fees Earned |
|
60,000 |
|
Salary Expense |
32,375 |
|
|
Supplies Expense |
2,100 |
|
|
Depreciation Expense |
1,500 |
|
|
Miscellaneous Expense |
2,000 |
|
|
Totals |
151,875 |
151,875 |
|
Notice that the accounts are listed in order of the Assets = Liabilities + Owner’s Equity + (Rev. – Exp.). The accounts are NOT listed alphabetically |
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