Cornhusker Company provides the following information at the end of 2021. Cash remaining 3,000 Rent expense for the year 5,200 Land that has been purchased 20,000 Retained earnings 10,600 Utility expense for the year 3,100 Accounts receivable from customers 5,400 Service revenue recognized during the year 28,000 Salary expense for the year 11,500 Accounts payable to suppliers 1,300 Dividends paid to shareholders during the year 1,400 Common stock that has been issued prior to 2021 15,000 Salaries owed at the end of the year 1,500 Insurance expense for the year 1,700 Retained earnings at the beginning of the year 5,500 No common stock is issued during 2021. Income statement for Cornhusker Company on December 31, 2021. Statement of stockholders’ equity for Cornhusker Company on December 31, 2021. Balance sheet for Cornhusker Company 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.
Cornhusker Company provides the following information at the end of 2021.
| Cash remaining | 3,000 | ||
| Rent expense for the year | 5,200 | ||
| Land that has been purchased | 20,000 | ||
| 10,600 | |||
| Utility expense for the year | 3,100 | ||
| Accounts receivable from customers | 5,400 | ||
| Service revenue recognized during the year | 28,000 | ||
| Salary expense for the year | 11,500 | ||
| Accounts payable to suppliers | 1,300 | ||
| Dividends paid to shareholders during the year | 1,400 | ||
| Common stock that has been issued prior to 2021 | 15,000 | ||
| Salaries owed at the end of the year | 1,500 | ||
| Insurance expense for the year | 1,700 | ||
| Retained earnings at the beginning of the year | 5,500 | ||
No common stock is issued during 2021.
- Income statement for Cornhusker Company on December 31, 2021.
- Statement of
stockholders’ equity for Cornhusker Company on December 31, 2021. - Balance sheet for Cornhusker Company on December 31, 2021.
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