Using the unadjusted trial balance, calculate the total assets, liabilities, common stock, dividends, revenues, and expenses. Enter those amounts in the expanded accounting equation. TOUCH LEARNING Unadjusted Trial Balance December 31, 2016 Balance Account Title Debit Credit Cash 32,500 Accounts Receivable 30,000 Office Supplies 15,000 Prepaid Rent 20,000 Prepaid Insurance 47,500 Furniture 52,600 Accumulated Depreciation - Furniture 22,500 Accounts Payable 35,000 Unearned Revenue 37,500 Notes Payable 27,500 Common Stock 80,100 Dividends 22,500 Service Revenue 47,500 Rent Expense 12,500 Salaries Expense 17,500 Total 250,100 250,100 Assets = Liabilities + Common Stock - Dividends + Revenues - Expenses ______ = __________ + ________________ - ___________ + __________ - __________
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.
Using the unadjusted
TOUCH LEARNING
Unadjusted Trial Balance
December 31, 2016
Balance
Account Title Debit Credit
Cash 32,500
Office Supplies 15,000
Prepaid Rent 20,000
Prepaid Insurance 47,500
Furniture 52,600
Accumulated
Accounts Payable 35,000
Unearned Revenue 37,500
Notes Payable 27,500
Common Stock 80,100
Dividends 22,500
Service Revenue 47,500
Rent Expense 12,500
Salaries Expense 17,500
Total 250,100 250,100
Assets = Liabilities + Common Stock - Dividends + Revenues - Expenses
______ = __________ + ________________ - ___________ + __________ - __________
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