Appendix 1Completing an end-of-period spreadsheet List (A) through (J) in the order they would be performed in preparingand completing an end-of-period spreadsheet. A. Add the Debit and Credit columns of the Unadjusted Trial Balancecolumns of the spreadsheet to verify that the totals are equal. B. Add the Debit and Credit columns of the Balance Sheet and IncomeStatement columns of the spreadsheet to verify that the totals are equal.C. Add or deduct adjusting entry data to trial balance amounts, andextend amounts to the Adjusted Trial Balance columns. D. Add the Debit and Credit columns of the Adjustments columns of thespreadsheet to verify that the totals are equal.E. Add the Debit and Credit columns of the Balance Sheet and Income Statement columns of the spreadsheet to determine the amount of netincome or net loss for the period.F. Add the Debit and Credit columns of the Adjusted Trial Balancecolumns of the spreadsheet to verify that the totals are equal. G. Enter the adjusting entries into the spreadsheet, based on theadjustment data H. Enter the amount of net income or net loss for the period in theproper Income Statement column and Balance Sheet column.I. Enter the unadjusted account balances from the general ledger intohe Unadjusted Trial Balance columns of the spreadsheet. J. Extend the adjusted trial balance amounts to the Income Statement columns and the Balance Sheet columns.
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.
Appendix 1
Completing an end-of-period spreadsheet
List (A) through (J) in the order they would be performed in preparing
and completing an end-of-period spreadsheet.
A. Add the Debit and Credit columns of the Unadjusted
columns of the spreadsheet to verify that the totals are equal.
B. Add the Debit and Credit columns of the Balance Sheet and Income
Statement columns of the spreadsheet to verify that the totals are equal.
C. Add or deduct adjusting entry data to trial balance amounts, and
extend amounts to the Adjusted Trial Balance columns.
D. Add the Debit and Credit columns of the Adjustments columns of the
spreadsheet to verify that the totals are equal.
E. Add the Debit and Credit columns of the Balance Sheet and Income
Statement columns of the spreadsheet to determine the amount of net
income or net loss for the period.
F. Add the Debit and Credit columns of the Adjusted Trial Balance
columns of the spreadsheet to verify that the totals are equal.
G. Enter the
adjustment data
H. Enter the amount of net income or net loss for the period in the
proper Income Statement column and Balance Sheet column.
I. Enter the unadjusted account balances from the general ledger into
he Unadjusted Trial Balance columns of the spreadsheet.
J. Extend the adjusted trial balance amounts to the Income Statement columns and the Balance Sheet columns.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
