в с Last Chance Company End-of-Period Spreadsheet For the Year Ended June 30, 2019 Unadjusted Trial Balance G 3 Adjusted Trial Balance Adjustments 6 Account Title Cr. Dr. Dr. Cr. Dr. Cr. 5,100 26,500 2,300 8 Cash 9 Accounts Receivable 10 Prepaid Insurance 11 Supplies 12 Land 13 Building 14 Accum. Depr.-Building 15 Equipment |16 Accum. Depr.–Equipment 17 Accounts Payable 18 Salaries and Wages Payable 19 Unearned Rent 20 Tami Garrigan, Capital 21 Tami Garrigan, Drawing 22 Fees Earned 23 Rent Revenue | 24 Salaries and Wages Expense 25 Advertising Expense 26 Utilities Expense 27 Travel Expense 28 Depr. Exp.-Equipment 29 Depr. Exp.–Building 30 Supplies Expense 31 Insurance Expense 32 Misc. Expense 33 5,100 22,750 (a) 3,750 (b) 1,300 (c) 1,500 3,600 2,025 80,000 525 80,000 340,000 340,000 190,000 (d) 3,000 193,000 140,000 140,000 54,450 9,750 59,000 9,750 1,900 1,500 361,300 (e) 4,550 (f) 1,900 4,500 (g) 3,000 361,300 20,000 20,000 280,000 283,750 3,000 (a) 3,750 (g) 3,000 147,000 86,800 30,000 18,750 4,550 (f) 1,900 145,100 86,800 30,000 18,750 (e) 4,550 (d) 3,000 (c) 1,500 (b) 1,300 3,000 1,500 1,300 5,875 5,875 19,000 913,200 913,200 900,000 900,000 19,000 34 -NM 45 O70OO
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.
Last Chance Company offers legal consulting advice to prison inmates. Last Chance Company prepared the end-of-period spreadsheet shown at the top of the following page at June 30, 2019, the end of the fiscal year.
Instructions
1. Prepare an income statement for the year ended June 30.
2. Prepare a statement of owner’s equity for the year ended June 30. No additional investments were made during the year.
3. Prepare a
4. On the basis of the end-of-period spreadsheet, journalize the closing entries.
5. Prepare a post-closing
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