Tar Heel Corporation provides the following information at the end of 2021. Salaries payable to workers at the end of the year $ 3,300 Advertising expense for the year 10,400 Building that has been purchased 80,000 Supplies at the end of the year 4,600 Retained earnings 40,000 Utility expense for the year 6,000 Note payable to the bank 25,000 Service revenue earned during the year 69,400 Salary expense for the year 26,700 Accounts payable to suppliers 7,700 Dividends paid to shareholders during the year ( ? ) Common stock that has been issued, including $6,000 that was issued this year 27,000 Cash remaining 5,200 Interest expense for the year 2,100 Accounts receivable from customers 13,200 Retained earnings at the beginning of the year 26,800 Required: Prepare the income statement, statement of stockholders’ equity, and balance sheet for Tar Heel Corporation on December 31, 2021.
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.
Tar Heel Corporation provides the following information at the end of 2021.
Salaries payable to workers at the end of the year $ 3,300
Advertising expense for the year 10,400
Building that has been purchased 80,000
Supplies at the end of the year 4,600
Retained earnings 40,000
Utility expense for the year 6,000
Note payable to the bank 25,000
Service revenue earned during the year 69,400
Salary expense for the year 26,700
Accounts payable to suppliers 7,700
Dividends paid to shareholders during the year ( ? )
Common stock that has been issued, including
$6,000 that was issued this year 27,000
Cash remaining 5,200
Interest expense for the year 2,100
Accounts receivable from customers 13,200
Retained earnings at the beginning of the year 26,800
Required:
Prepare the income statement, statement of
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