Oriole Company was organized on April 1, 2020. The company prepares quarterly financial statements. The adjusted trial balance amounts at June 30 are shown below. Debit Credit Cash $ 6,200 Accumulated Depreciation—Equipment $ 800 Accounts Receivable 680 Notes Payable 4,300 Prepaid Rent 1,000 Accounts Payable 900 Supplies 900 Salaries and Wages Payable 300 Equipment 12,600 Interest Payable 70 Owner’s Drawings 400 Unearned Rent Revenue 300 Salaries and Wages Expense 7,200 Owner’s Capital 12,380 Rent Expense 1,400 Service Revenue 11,100 Depreciation Expense 800 Rent Revenue 1,700 Supplies Expense 100 $31,850 Utilities Expense 500 Interest Expense 70 $31,850 Determine the net income for the quarter April 1 to June 30. Net income $ Determine the total assets and total liabilities at June 30, 2020, for Oriole Company. Yang Company Total assets $ Total liabilities $ Determine the amount that appears for Owner’s Capital at June 30, 2020. Owner’s capital, June 30 $
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.
Oriole Company was organized on April 1, 2020. The company prepares quarterly financial statements. The adjusted
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Debit
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Credit
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| Cash | $ 6,200 | $ 800 | ||||
| Accounts Receivable | 680 | Notes Payable | 4,300 | |||
| Prepaid Rent | 1,000 | Accounts Payable | 900 | |||
| Supplies | 900 | Salaries and Wages Payable | 300 | |||
| Equipment | 12,600 | Interest Payable | 70 | |||
| Owner’s Drawings | 400 | Unearned Rent Revenue | 300 | |||
| Salaries and Wages Expense | 7,200 | Owner’s Capital | 12,380 | |||
| Rent Expense | 1,400 | Service Revenue | 11,100 | |||
| Depreciation Expense | 800 | Rent Revenue | 1,700 | |||
| Supplies Expense | 100 | $31,850 | ||||
| Utilities Expense | 500 | |||||
| Interest Expense | 70 | |||||
| $31,850 |
Determine the net income for the quarter April 1 to June 30.
| Net income | $
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Determine the total assets and total liabilities at June 30, 2020, for Oriole Company.
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Yang Company
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||
| Total assets | $
|
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| Total liabilities | $
|
Determine the amount that appears for Owner’s Capital at June 30, 2020.
| Owner’s capital, June 30 | $
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