The unadjusted trial balance for PS Music as of July 31, 20Y5 is as follows: PS Music Unadjusted Trial Balance July 31, 20Y5 Account No. Debit Balances Credit Balances Cash 11 9,945 Accounts Receivable 12 2,750 Supplies 14 1,020 Prepaid Insurance 15 2,700 Office Equipment 17 7,500 Accounts Payable 21 8,350 Unearned Revenue 23 7,200 Common Stock 31 9,000 Dividends 33 1,750 Fees Earned 41 16,200 Wages Expense 50 2,800 Office Rent Expense 51 2,550 Equipment Rent Expense 52 1,375 Utilities Expense 53 1,215 Music Expense 54 3,610 Advertising Expense 55 1,500 Supplies Expense 56 180 Miscellaneous Expense 59 1,855 40,750 40,750
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.
The unadjusted
| PS Music Unadjusted Trial Balance July 31, 20Y5 |
|||
|---|---|---|---|
| Account No. | Debit Balances | Credit Balances | |
| Cash | 11 | 9,945 | |
| Accounts Receivable | 12 | 2,750 | |
| Supplies | 14 | 1,020 | |
| Prepaid Insurance | 15 | 2,700 | |
| Office Equipment | 17 | 7,500 | |
| Accounts Payable | 21 | 8,350 | |
| Unearned Revenue | 23 | 7,200 | |
| Common Stock | 31 | 9,000 | |
| Dividends | 33 | 1,750 | |
| Fees Earned | 41 | 16,200 | |
| Wages Expense | 50 | 2,800 | |
| Office Rent Expense | 51 | 2,550 | |
| Equipment Rent Expense | 52 | 1,375 | |
| Utilities Expense | 53 | 1,215 | |
| Music Expense | 54 | 3,610 | |
| Advertising Expense | 55 | 1,500 | |
| Supplies Expense | 56 | 180 | |
| Miscellaneous Expense | 59 | 1,855 | |
| 40,750 | 40,750 |
Based on those balances and the additional data below, prepare
| Account # | Account Name |
| 18 | |
| 22 | Wages Payable |
| 57 | Insurance Expense |
| 58 | Depreciation Expense |
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