unt titles are automatically indented when the amount is entered. Do not indent manually. If no e ne account titles and enter O for the amounts.) ount Titles and Explanation Debit aw Materials 8700 Accounts Payable aw Materials 8000
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.
![Prepare any correcting journal entries that are required at December 31, 2020, assuming that the books have not been closed.
(Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No
Entry" for the account titles and enter O for the amounts.)
No. Account Titles and Explanation
Debit
Credit
1.
Raw Materials
8700
Accounts Payable
8700
2.
Raw Materials
8000
Accounts Payable
8000
3.
28700
28700
4.
Accounts Payable
8100
Raw Materials
8100
5.
No Entry
No Entry
6.
Accounts Receivable
20000
Sales Revenue
20000
7.
No Entry
No Entry](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c35567e-5a8e-4edb-8a66-66d161b7f95c%2Fbb9d507b-b1ac-4013-93bf-955d8b9f9779%2F31p5lmh_processed.jpeg&w=3840&q=75)
![The Marigold Equipment Corporation maintains a general ledger account for each class of inventory, debiting the individual accounts
for increases during the period and crediting them for decreases. The transactions that follow are for the Raw Materials inventory
account, which is debited for materials purchased and credited for materials requisitioned for use.
1.
An invoice for $8,700, terms f.o.b. destination, was received and entered on January 2, 2021. The receiving report shows that
the materials were received on December 28, 2020.
Materials costing $8,000 were returned to the supplier on December 29, 2020, on f.o.b. shipping point terms. The returns
were entered into Marigold's general ledger on December 28, even though the returned items did not arrive at the vendor's
office until January 6, 2021.
2.
Materials costing $28,700, shipped f.o.b. destination, were not entered by December 31, 2020, because they were in a
railroad car on the company's siding on that date and had not been unloaded.
3.
4.
An invoice for $8,100, terms f.o.b. shipping point, was received and entered on December 30, 2020. The receiving report
shows that the materials were received on January 4, 2021, and the bill of lading shows that they were shipped on January 2,
2021.
Materials costing $19,900 were received on December 30, 2020. No entry was made for them as at that date, because they
were ordered with a specified delivery date of no earlier than January 10, 2021.
5.
Materials costing $20,000 were received on December 29, 2020. The supplier's warehouse was full and the supplier asked
Marigold to hold these items on its behalf and has also insured these items for the period that Marigold will be holding them.
6.
The purchase terms indicate that the supplier will buy these items back from Marigold in early January 2021 at $20,000 plus
storage fees.
7.
Materials costing $5,900 were received on December 20, 2020, on consignment from P. Perry Company.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c35567e-5a8e-4edb-8a66-66d161b7f95c%2Fbb9d507b-b1ac-4013-93bf-955d8b9f9779%2Fwmbtdro_processed.jpeg&w=3840&q=75)
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