Heidi Jara opened Pina Colada's cleaning services on July 1 2022. During July, the following transactions were completed. July1 stockholder's invested $20100 cash in the business in exchange for commonstock. July1 purchased used truck for $9100,paying 3800cash and the balance on account 3 purchased cleaning supplies for $2200 on account 5 paid $1680 cash on a 1 year insurance policy effective July 1 12 Billed customers 4400 for cleaning serivices 18 paid $1600 cash on amount owned on truck and $ 1300 on amount owned on cleaning supplies. 20 paid 2600 cash for employee salaries 21 collected $3300 cash from customers billed on july 12 25 Billed customers 6100 for cleaning services. 31 paid $ 350 for the monthly gasoline bill for the truck 31 paid a $5700 cash dividend prepare the trial balance at July 31 on worksheet. enter the following adjustments on the worksheet and complete the worksheet 1) unbilled and uncollected revenues for services performed at July 31 were $ 2800. 2) Depreciation on equipment for month was $500 3) one - twelfth of the insurance expired 4) an inventory count shows $700 of cleaning supplies on hand at July 31. 5) Accured but unpaid employee salaries were $1020 Find the trial balance, Adjustments Adjusted trial balance income statement and balance sheet
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.
Heidi Jara opened Pina Colada's cleaning services on July 1 2022. During July, the following transactions were completed.
July1 stockholder's invested $20100 cash in the business in exchange for commonstock.
July1 purchased used truck for $9100,paying 3800cash and the balance on account
3 purchased cleaning supplies for $2200 on account
5 paid $1680 cash on a 1 year insurance policy effective July 1
12 Billed customers 4400 for cleaning serivices
18 paid $1600 cash on amount owned on truck and $ 1300 on amount owned on cleaning supplies.
20 paid 2600 cash for employee salaries
21 collected $3300 cash from customers billed on july 12
25 Billed customers 6100 for cleaning services.
31 paid $ 350 for the monthly gasoline bill for the truck
31 paid a $5700 cash dividend
prepare the
1) unbilled and uncollected revenues for services performed at July 31 were $ 2800.
2) Depreciation on equipment for month was $500
3) one - twelfth of the insurance expired
4) an inventory count shows $700 of cleaning supplies on hand at July 31.
5) Accured but unpaid employee salaries were $1020
Find the trial balance, Adjustments Adjusted trial balance income statement and balance sheet
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