Essay on Business Accounting
Added on -2020-07-22
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Business Accounting
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Adjusted Trial Balance................................................................................................................1Journalization of adjustment transaction.....................................................................................2Post-adjusting journal entries......................................................................................................4Closing entries.............................................................................................................................4Income statement.........................................................................................................................5Statement of financial position or balance sheet.........................................................................6Statement of changes in equity (SOCE)......................................................................................8CONCLUSION................................................................................................................................9
INTRODUCTION Financial accounting is highly significant which in turn provides assistance in trackingthe monetary transactions or performance of the company. In this, accounting manager of thefirm undertakes standardized guidelines to record summarize and present monetary transaction infinancial reports. The present report is based on the data set of Paul services which will reflecthis financial position for the year ended on 30th June 2016. Besides this, it will also shed light onthe aspects of closing entries, trial balance, income statement and balance sheet which are themain elements of financial accounting. Adjusted Trial Balance Trial balance: It may be served or presented as a bookkeeping worksheet which in turnshows balances of all the ledgers account. At the time of financial statement preparation it is oneof the main sheet which gives input for the preparation of income statement, balance sheets andaccounts pertaining to changes in equity. In accordance with the double entry system adjustmentspertaining to financial aspects place impact on two sides. Hence, by considering the givenadjustments following trial balance has been prepared: Paul services Trial Balance As At 30 JUNE 2016Account NoAccount Name Debit Credit 101Cash at Bank$197,680 105Accounts Receivable$60,060 115Supplies$3,500 120Prepaid Insurance$5,600 135Office Furniture$56,000 137Acc. Depreciation. - Furniture$12,833 140Office Equipment$112,000 141Acc. Depreciation - Equipment$25,667 145Store Equipment$189,000 146Acc. Depreciation - Equipment$19,250
170Automobile$252,000 171Acc. Depreciation - Automobile$25,667 201Accounts Payable$120,120 202Interest Payable$180,180 207Unearned revenue$35,000 210Loan Payable$14,000 215Mortgage Payable$280,000 301Paul's Capital$159,153 305Paul's Drawings$77,000 401 Revenue$297,500 601Advertising Expense$3,600 605Automobile Expense$5,775 615Depreciation Expense - Furniture$26,833 620Depreciation Expense - Equipment$53,667 625Depreciation Expense - Store Equipment$40,250 640Depreciation Expense - Automobile$53,667 650Insurance Expense$1,880 665Maintenance Expense$12,600 670Miscellaneous Expense$1,155 675Rent Expense$2,567 680Supplies Expense less Prepaid supplies)$4,433 685Utilities Expense$3,850 690Interest Expense$33,133 Outstanding interest on Mortgage $28,000 Prepaid insurance $1,120 Total $1,197,370 $1,197,370 Journalization of adjustment transaction Statement which is prepared to keep or record the accounting transactions in achronological order is known as Journal. It is the prior step that is undertaken to prepare financialstatements (Accounting Journal Entries, 2017). Moreover, it further helps in developing ledger,trial balance and financial statements.
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