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The ledger of Piper Rental Agency on March 31 of the current year included the following selected accounts before adjusting entries have been prepared.?
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∙ 13y ago
1. Mar. 31 Depreciation Expense ($400 X 3) 1,200
Accumulated Depreciation-
Equipment 1,200
2. 31 Unearned Rent 3,300
Rent Revenue ($9,900 X 1/3) 3,300
3. 31 Interest Expense 500
Interest Payable 500
4. 31 Supplies Expense 2,100
Supplies ($2,800 - $700) 2,100
5. 31 Insurance Expense ($200 X 3) 600
Prepaid Insurance 600
Michelle Littel
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Can financial statements be prepared directly from the adjusted trial balance?
Yes, adjusting entries have been recorded in the general journal and posted to the ledger accounts.
Why source document important to a business or accounts?
The source documents upon which the accounts are prepared will be evidence that the accounts for the business have been correctly prepared.
Financial statements are directly prepared from?
Adjusting Trial Balance
Independent branch accounts?
It is a branch which had able to prepare its own accounts on its books then we say that is an independent branch. Accounts prepared by it is technically called as independent branch accounts.
Is trial balance prepared before preparation of final accounts?
yes
Can financial statements be prepared directly from the adjusted trial balance?
Yes, adjusting entries have been recorded in the general journal and posted to the ledger accounts.
Why source document important to a business or accounts?
The source documents upon which the accounts are prepared will be evidence that the accounts for the business have been correctly prepared.
Financial statements are directly prepared from?
Adjusting Trial Balance
Is a source document prepared for adjusting entries?
Yes. An adjusting entry is usually supported by work papers. No this is not true no source document is needed!
Independent branch accounts?
It is a branch which had able to prepare its own accounts on its books then we say that is an independent branch. Accounts prepared by it is technically called as independent branch accounts.
Final accounts of a farmer can be prepared under?
single entry method
Is trial balance prepared before preparation of final accounts?
yes
When is a schedule of accounts receivable prepared?
after all current entries are posted
Why final accounts are prepared?
Final Accounts are prepared so that every entity can know its financial position, by so doing it enables management to know if they are performing well or not. Final accounts stakeholders and those who have interest whether direct and indirect to know how well the entity is performing. Such stakeholders are the media, shareholders, the government and its regulatory bodies like the IRS, vendors, potential investors who might want to invest in the entity in the following year or years down the line.
What should the post closing trial balance is best prepared from?
The General Ledger provides all the information you need to prepare a Post Closing Trial Balance as well as a Trial Balance, etc. A post closing trial balance is a trial balance that is prepared "before" accounts are closed out for the accounting period, such as expenses, revenues, etc. Adjusting entries are made to the General Ledger from the Journal entries and then a PCTB is prepared using the information obtained in the Ledger.
What is the two methods of preparing trial balance?
A trial balance may be prepared according to either of the following two methods:Total method:If the total of debit sides of all accounts in the ledger is placed in one column of the list and similarly total of credit sides of all the accounts in the ledger is placed in another column of the list then list of total will be known to have been prepared with the total methods.Balances method:According to this system a trial balance is prepared on the basis of balances of accounts. It is based on the mathematical maxim that if equals are taken away from equals, results are equal. This method is simple and requires less work.
Which inventory gets into the balance sheets- opening or closing inventory?
Since it is the balance sheet, which is generally prepared at the "end" of a financial period, it would be your closing inventory that goes onto the balance sheet. Once you have made all your adjusting entries and closing of accounts you prepare a Post Closing Trial Balance to check that all accounts remained balance. Since it is the "end" of the year and you are "closing" your books for the Fiscal Year, all adjusting entries are made, this includes taking inventory to get your closing inventory which goes onto your Post Closing Trial Balance and on your Balance Sheet.
