Question

how do you prepare the ADJUSTED TRIAL BALANCE to present the financial statements.

how do you prepare the ADJUSTED TRIAL BALANCE to present the financial statements.

Homework Answers

Answer #1

Adjusted Trial Balance of the company in the non-financial statement in which the list and the balances of the company’s all the accounts are presented after the adjusting journal entries are made at the year-end and those balances are then reported on respective financial statements.

Preparation of adjusted balance sheet

Step 1 – Accrual of revenue that was earned but was not yet recorded.

This arises when an asset is a sale but customer not yet billed for the same. Eg. Account receivable, accrued interest.

Accrued revenue A/C – Dr

To revenue a/c. Cr

Step 2-

Accrual of expenses that were incurred but were not yet recorded.

This is an expense recorded in accounts before the payment is made. Eg Interest payable, salaries and wages payable.

Expense A/C- Dr

Expense payable- Cr

Step 3-

3 – Prepayments

Prepayment is the setting of a payment prior to its due date. Eg. Prepaid rent.

Prepaid expense A/C- Dr

Cash A/C- Cr

Step 4-

4 – Depreciation

Depreciation is a non-cash expense which is identified in order to account for the deterioration of fixed assets to reflect the reduction in useful economic life.adjust this with the prevailing trial balance

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the statements below is NOT true? An adjusted trial balance proves the mathematical equality...
Which of the statements below is NOT true? An adjusted trial balance proves the mathematical equality of debits and credits in the ledger. An adjusted trial balance is prepared before all transactions have been journalized. An adjusted trial balance can be used to prepare financial statements. An adjusted trial balance should show ledger account balances. B) A furniture factory's employees work overtime to finish an order that is sold on February 28. The office sends a statement to the customer...
The balance of the dividends account on the adjusted trial balance of the end-of-period spreadsheet flows...
The balance of the dividends account on the adjusted trial balance of the end-of-period spreadsheet flows into which of the following financial statements? a.The balance sheet b.The income statement c.The statement of stockholders' equity' d.All of these financial statements are correct.
-Can financial statements be prepared without adjusting entries? -What impact will the omission of adjusting entries...
-Can financial statements be prepared without adjusting entries? -What impact will the omission of adjusting entries have on the financial statements? -Do companies use the unadjusted trial balance or the adjusted trial balance to prepare financial statements?
Additional Exercise 243 The adjusted trial balance of C.S. Financial Planners appears below. C.S. Financial Planners...
Additional Exercise 243 The adjusted trial balance of C.S. Financial Planners appears below. C.S. Financial Planners Adjusted Trial Balance December 31, 2018 Debit Credit Cash $4,900 Accounts Receivable 2,200 Supplies 1,800 Equipment 15,000 Accumulated Depreciation—Equipment $4,000 Accounts Payable 3,300 Unearned Service Revenue 6,000 Common Stock 10,000 Retained Earnings 4,400 Dividends 2,500 Service Revenue 4,200 Supplies Expense 600 Depreciation Expense 2,500 Rent Expense 2,400 $31,900 $31,900 Using the information from the adjusted trial balance, you are to prepare for the month...
Victoria Lee Company had the following adjusted trial balance. Victoria Lee Company Adjusted Trial Balance For...
Victoria Lee Company had the following adjusted trial balance. Victoria Lee Company Adjusted Trial Balance For the Month Ended June 30, 2020 Adjusted Trial Balance Account Titles Debit Credit Cash $3,712 Accounts Receivable 3,904 Supplies 480 Accounts Payable $1,382 Unearned Service Revenue 160 Owner’s Capital 5,760 Owner’s Drawings 550 Service Revenue 4,300 Salaries and Wages Expense 1,260 Miscellaneous Expense 256 Supplies Expense 1,900 Salaries and Wages Payable 460 $12,062 $12,062 Prepare closing entries at June 30,2020 Prepare a post- closing...
Exercise 4-11 Preparing the financial statements LO C2 The following is the adjusted trial balance of...
Exercise 4-11 Preparing the financial statements LO C2 The following is the adjusted trial balance of Wilson Trucking Company. Account Title Debit Credit Cash $ 8,000 Accounts receivable 17,500 Office supplies 3,000 Trucks 172,000 Accumulated depreciation—Trucks $ 36,000 Land 85,000 Accounts payable 12,000 Interest payable 4,000 Long-term notes payable 53,000 K. Wilson, Capital 175,000 K. Wilson, Withdrawals 20,000 Trucking fees earned 130,000 Depreciation expense—Trucks 23,500 Salaries expense 61,000 Office supplies expense 8,000 Repairs expense—Trucks 12,000 Totals $ 410,000 $ 410,000...
Which of the following statements is true? Multiple Choice The trial balance is a list of...
Which of the following statements is true? Multiple Choice The trial balance is a list of all the accounts in the journal A trial balance is only prepared at year end The trial balance is a list of the accounts in the general ledger Another name for the trial balance is the "chart of accounts" The trial balance is never used to prepare financial statements.
Why do we prepare a trial balance?
Why do we prepare a trial balance?
The following is the Frederick Company's adjusted Trial Balance. Frederick Company Adjusted Trial Balance December 31,...
The following is the Frederick Company's adjusted Trial Balance. Frederick Company Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $85,150 Accounts Receivable 229,140 Supplies 16,955 Equipment 395,285 Accumulated Depreciation $221,260 Accounts Payable 74,235 Capital Stock 220,000 Retained Earnings 101,145 Service Revenue 893,105 Interest Income 1,500 Dividends 2,000 Rent Expense 58,500 Wages Expense 527,260 Supplies Expense 42,520 Utilities Expense 8,595 Depreciation Expense 145,840 ________      Totals $1,522,565 $1,522,565 Use this information to prepare the Balance Sheet for the fiscal...
Requirement #6: Prepare an adjusted trial balance in the space below. Quick Tax Corporation Adjusted Trial...
Requirement #6: Prepare an adjusted trial balance in the space below. Quick Tax Corporation Adjusted Trial Balance July 31 0 0 During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation, completed the following transactions. July 1 Began business by making a deposit in a company bank account of $40,000, in exchange for 4,000 shares of $10 par value common stock. July 3 Paid the current month's rent, $2,500 July 5 Paid the premium on...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT