9. Prepare an income statement and a statement of changes in equity for the two months ended November 30. 2020. as well as a balance sheet at Novembe 30. 2020. Nov. 1 Reimbursed Aster Turane's business automobile expense for 2,630 kilometres at $1.60 per kilometre. 2 Received $7,920 cash from Langara Lodge for computer services rendered. 5 Purchased $420 of computer supplies for cash from Triple-One Supplies. 8 Billed Dinwoody Entertainment $4,230 for computer services rendered. 13 Notified by Kinsetta Groceries that Aster's bid of $5,950 for an upcoming project was accepted. 18 Received $4,200 from Whistler Resort against the bill dated October 28. 22 Donated $500 to the Hope Mission in the company's name. 24 Completed work for Kinsetta Groceries and sent a bill for the agreed amount. 25 Sent another bill to Whistler Resort for the past due amount of $2,200. 28 Reimbursed Aster Turane's business automobile expense for 1,080 kilometres at $1.60 per kilometre. 30 Paid Donald Gee for 17 days' work. 30 Aster Turane withdrew $1.400 cash from the business for personal use.
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.
Part B
Required
6. Prepare
7. Post the November entries.
8. Prepare a
9. Prepare an income statement and a statement of changes in equity for the two months ended
November 30. 2020. as well as a balance sheet at Novembe 30. 2020.
Nov. 1 Reimbursed Aster Turane's business automobile expense for 2,630
kilometres at $1.60 per kilometre.
2 Received $7,920 cash from Langara Lodge for computer services rendered.
5 Purchased $420 of computer supplies for cash from Triple-One Supplies.
8 Billed Dinwoody Entertainment $4,230 for computer services rendered.
13 Notified by Kinsetta Groceries that Aster's bid of $5,950 for an
upcoming project was accepted.
18 Received $4,200 from Whistler Resort against the bill dated October 28.
22 Donated $500 to the Hope Mission in the company's name.
24 Completed work for Kinsetta Groceries and sent a bill for the agreed amount.
25 Sent another bill to Whistler Resort for the past due amount of $2,200.
28 Reimbursed Aster Turane's business automobile expense for 1,080
kilometres at $1.60 per kilometre.
30 Paid Donald Gee for 17 days' work.
30 Aster Turane withdrew $1.400 cash from the business for personal use.
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