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Are wage expense considered a current liability?
Generally NO, wages are an expense. The only exception to the rule is if a company has "wages payable" which is wages that they owe but have not yet paid, "wages payable" is a liability until they are paid. Once paid, the account is closed into wage expense and is listed under the asset column of the Trial Balance sheet, until the end of the accounting cycle when expense accounts are closed out for the year end.
What does AR on Deduction column mean?
In a financial or accounting context, "AR" in the Deduction column typically stands for "Accounts Receivable." It represents amounts owed to a company by its customers for goods or services delivered but not yet paid for. The Deduction column indicates reductions in this receivable balance, such as payments received or adjustments made. Understanding this helps businesses track cash flow and manage outstanding debts effectively.
When posting a column total in the purchases journal a credit should be posted to?
accounts payable
Prepare a ledger using the three column form of account. Enter the tiral balnce amounts and post the adjusting trial balance?
To prepare a ledger using the three-column form of account, you would typically have columns for account names, debit amounts, and credit amounts. Start by entering the trial balance amounts in their respective debit or credit columns based on the account type. Then, post the adjusting trial balance entries by making the necessary adjustments to the account balances based on accrued expenses, prepaid expenses, depreciation, and other adjusting entries. Be sure to update each account balance accordingly in the ledger to reflect the adjustments made.
When posting the column totals of a cash payments journal a debit should be posted to?
accounts payable
The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals?
income statement credit column and the balance sheet debit column
Are wage expense considered a current liability?
Generally NO, wages are an expense. The only exception to the rule is if a company has "wages payable" which is wages that they owe but have not yet paid, "wages payable" is a liability until they are paid. Once paid, the account is closed into wage expense and is listed under the asset column of the Trial Balance sheet, until the end of the accounting cycle when expense accounts are closed out for the year end.
What does AR on Deduction column mean?
In a financial or accounting context, "AR" in the Deduction column typically stands for "Accounts Receivable." It represents amounts owed to a company by its customers for goods or services delivered but not yet paid for. The Deduction column indicates reductions in this receivable balance, such as payments received or adjustments made. Understanding this helps businesses track cash flow and manage outstanding debts effectively.
Is net income recorded on the worksheet in the Income Statement Debit column and the Balance Sheet Credit column?
debit column of the income statement and the credit column of the balance sheet.
When posting a column total in the purchases journal a credit should be posted to?
accounts payable
Prepare a ledger using the three column form of account. Enter the tiral balnce amounts and post the adjusting trial balance?
To prepare a ledger using the three-column form of account, you would typically have columns for account names, debit amounts, and credit amounts. Start by entering the trial balance amounts in their respective debit or credit columns based on the account type. Then, post the adjusting trial balance entries by making the necessary adjustments to the account balances based on accrued expenses, prepaid expenses, depreciation, and other adjusting entries. Be sure to update each account balance accordingly in the ledger to reflect the adjustments made.
How does an 8-column worksheet differ from a 10-column worksheet?
An 8-column worksheet is standard for the following: Unadjusted Trial Balance, Adjustments, Adjusted Trial Balance, Income Statement, and Balance Sheet. The 10-column worksheet has an extra two columns for the Post-Closing Trial Balance.
When posting the column totals of a cash payments journal a debit should be posted to?
accounts payable
What record that contains all accounts of company?
general ledger, general journal, special ledger, special journal, column balance ledger.
A net loss appears on the work sheet in what column?
debit column of the Income Statement columns
What is double column cash book?
Double column cash book is tha in which there are columns for cash balance as well as for bank balance.
Discuss the procedures in preparing a 10 column worksheet.?
Start with the Heading. There are three lines in the heading, the name of the company, the title of the report which is "worksheet", and the tag "For the Year Ended and then the ending date. List all the accounts on the accounts column. All the accounts entered in the trial balance and the accounts appeared in the adjustments. Then write the following Column Titles: Trial Balance - 1st two columns, Adjustments 3rd & fourth column; Adjusted Trial Balance - 5th & 6th columns; Income Statement on the 7th & 8th columns; and Balance Sheet for the 9th & 10th column. Then list all the debit and credit amount on their respective columns. The Trial Balance coming from the Trial Balance report. The adjustments coming from the different accounts that need to be adjusted (e.g. accruals, prepaid expense, unearned income, depreciation and bad debts) The Adjusted Trial Balance - by just combining the first two columns the Trial Balance and Adjustments to fill-up this column. Example: If there is an amount on both Trial Balance and Adjustment columns you need to get the sum of the two amount - if the amount is on the same side (both debit or both credit) otherwise get the difference. If only one of the two mentioned columns has an amount, just copy that amount on the Adjusted Trial Balance. For the Income Statement Column, enter all amounts under the accounts of revenues and expenses then the rest should be entered under the balance sheet column. Get the total of all the debit and credit of the different columns. Add an amount either on the debit or credit of the Income Statement to make both sides equal. Do the same with the Balance sheet column. Identify this added amount either as Net Income or Net Loss and write it under the Account Column below the first total.
