l****q
发帖数: 767 | 1 From Becker:
The following trial balance of Trey Co. at Dec 31, 1993, has been adjusted
except for income tax expense:
cash 550K DR
AR, net 1650k DR
Prepaid taxes 300k DR
AP 120K CR
Common Stock 500k CR
Add'l paid-in Capital 680K CR
Retained earnings 630K CR
Foreign Currenc |
b*****d
发帖数: 184 | 2 RE = Beginning RE + Net Income - Dividend
= 680K + 3600K - 2600K - 300K
= 1,330K
If retained earning is increased to 700K, other items (revenue, expense, tax
, interest expenses, etc) may change as well. These changes need to be
given. The trial balance will remain 0 when all these changes are taken
into account.
Please note that I have never taken any accounting classes, but I have read
income statements and balance sheets before.
【在 l****q 的大作中提到】
: From Becker:
: The following trial balance of Trey Co. at Dec 31, 1993, has been adjusted
: except for income tax expense:
:
: cash 550K DR
: AR, net 1650k DR
: Prepaid taxes 300k DR
: AP 120K CR
: Common Stock 500k CR
: Add'l paid-in Capital 680K CR
|
l****q
发帖数: 767 | 3 Thank you! There should be some other adjustments to be made for the $700 to
offset the increased retained earnings, so that the ending balance of TB
will be zeroed out. There are items on TB listed in this question, but I don
't know which item on DR needs to be adjusted for this change.
???? $700
Retained Earnings $700
You are cool. You can say some key points here without taking any accounting
classes. Thanks for your help! |
t****4
发帖数: 625 | 4 税前收入1000K 减去税300K 等于700K
700K加上期初RE630K等于1330K |
b*****d
发帖数: 184 | 5 Why the RE is changed? Any item or a combination of items on TB could have
been changed...this information needs to be given. Is this part of the
original problem? I don't think we can figure out what have been changed
with the information given...
to
don
accounting
【在 l****q 的大作中提到】
: Thank you! There should be some other adjustments to be made for the $700 to
: offset the increased retained earnings, so that the ending balance of TB
: will be zeroed out. There are items on TB listed in this question, but I don
: 't know which item on DR needs to be adjusted for this change.
: ???? $700
: Retained Earnings $700
: You are cool. You can say some key points here without taking any accounting
: classes. Thanks for your help!
|
l****q
发帖数: 767 | 6 Thank you! I know how the $1330 comes from, but I don't know how the TB
would be balanced once the retained earning increased to $1330, because DR
side of the TB would remain $5330, right?
Tax exps $700, Prepaid Tax ($700) |
t****4
发帖数: 625 | 7
700
或者一个一个的把INCOME STATEMENT ACCOUNT CLOSE TO RE， 结果和上面是一样的
to
don
accounting |
l****q
发帖数: 767 | 8 The beginning balance of RE is:
Retained earnings 630K CR
the ending balance of RE is $1330. The change is $700.
This is the whole question except for #2 in the add'l info, which I don't
think is related to RE question that I'm concerned.
TB balanced before tax expense gets adjusted, so I assume something else on
DR side needs to be adjusted. This is something I think about beyond the
original question asks for. Just curious...
have
【在 b*****d 的大作中提到】
: Why the RE is changed? Any item or a combination of items on TB could have
: been changed...this information needs to be given. Is this part of the
: original problem? I don't think we can figure out what have been changed
: with the information given...
:
: to
: don
: accounting
|
t****4
发帖数: 625 | 9 天，你是在准备考CPA吗？这么简单的都不明白？
DR REVENUE 3600
CR Expense 2600
CR Income tax expnese 300
CR RE 700
on
【在 l****q 的大作中提到】
: The beginning balance of RE is:
: Retained earnings 630K CR
: the ending balance of RE is $1330. The change is $700.
: This is the whole question except for #2 in the add'l info, which I don't
: think is related to RE question that I'm concerned.
: TB balanced before tax expense gets adjusted, so I assume something else on
: DR side needs to be adjusted. This is something I think about beyond the
: original question asks for. Just curious...
:
: have
|
l****q
发帖数: 767 | 10 I see what you are saying. really helpful to understand this thing. So, is
there any specific name for it on the trial balance to replace my QUESTION
MARKs below:
???? $700
RE $700
【在 t****4 的大作中提到】
:
: 700
: 或者一个一个的把INCOME STATEMENT ACCOUNT CLOSE TO RE， 结果和上面是一样的
: to
: don
: accounting
|
|
|
l****q
发帖数: 767 | 11 Sorry about that, but yes I'm preparing...
WHy you put REV on DR side, it was on CR.
【在 t****4 的大作中提到】
: 天，你是在准备考CPA吗？这么简单的都不明白？
: DR REVENUE 3600
: CR Expense 2600
: CR Income tax expnese 300
: CR RE 700
:
: on
|
t****4
发帖数: 625 | 12 OMG！ that's called closing to RE! Can't you see the ending bal of RE after
this entry?
【在 l****q 的大作中提到】
: Sorry about that, but yes I'm preparing...
: WHy you put REV on DR side, it was on CR.
|
b*****d
发帖数: 184 | 13 Sorry, I misunderstood your question last night. I didn't realize you were referring to the adjusted trial balance....I thought you said RE is increased to $700K (instead of increased by $700K in this case).
When preparing an after-closing trial balance, the income statement needs to be reset to 0 to prepare for the up-coming accounting period. The balance sheet is carried over. The after-closing trial balance contains ONLY the balance sheet accounts.
In this case, they will be balanced out w
【在 l****q 的大作中提到】
: The beginning balance of RE is:
: Retained earnings 630K CR
: the ending balance of RE is $1330. The change is $700.
: This is the whole question except for #2 in the add'l info, which I don't
: think is related to RE question that I'm concerned.
: TB balanced before tax expense gets adjusted, so I assume something else on
: DR side needs to be adjusted. This is something I think about beyond the
: original question asks for. Just curious...
:
: have
|
C*****U
发帖数: 3512 | 14 luluqq,
By the point of time the question is presented to you, the following entries
have been made:
Step 1:
Dr A/R 100
Cr Revenue 100
Dr Expense/COGS 90
Cr Inventory 90
Step 2:
Omitted, to be made, which is the answer to your question. Below please see
the details.
Step 3:
Dr Net Income 10
Cr Retained Earnings 10
To answer the original question presented to you and complete the cycle, the
entry needed as follows:
Step 2:
Dr. Tax Expenses
【在 l****q 的大作中提到】
: From Becker:
: The following trial balance of Trey Co. at Dec 31, 1993, has been adjusted
: except for income tax expense:
:
: cash 550K DR
: AR, net 1650k DR
: Prepaid taxes 300k DR
: AP 120K CR
: Common Stock 500k CR
: Add'l paid-in Capital 680K CR
|
l****q
发帖数: 767 | 15 Thanks!
The steps you listed actually clarify what confuses me.
“By the point of time the question is presented to you, the following
entries
have been made:
Step 1:
Dr A/R 100
Cr Revenue 100
Dr Expense/COGS 90
Cr Inventory 90
Step 2:
Omitted, to be made, which is the answer to your question. Below please see
the details.
Step 3:
Dr Net Income 10
Cr Retained Earnings 10”
Let me add one 0 to your numbers first. So, when this question is presented
to me (the TB has been adjusted except for income
【在 C*****U 的大作中提到】
: luluqq,
: By the point of time the question is presented to you, the following entries
: have been made:
: Step 1:
: Dr A/R 100
: Cr Revenue 100
: Dr Expense/COGS 90
: Cr Inventory 90
: Step 2:
: Omitted, to be made, which is the answer to your question. Below please see
|
l****q
发帖数: 767 | 16 This makes sense. Thanks a lot!!!
were referring to the adjusted trial balance....I thought you said RE is
increased to $700K (instead of increased by $700K in this case).
to be reset to 0 to prepare for the up-coming accounting period. The
balance sheet is carried over. The after-closing trial balance contains
ONLY the balance sheet accounts.
tax (300K), expenses (2600K), and revenues (3600K). RE will remain there.
【在 b*****d 的大作中提到】
: Sorry, I misunderstood your question last night. I didn't realize you were referring to the adjusted trial balance....I thought you said RE is increased to $700K (instead of increased by $700K in this case).
: When preparing an after-closing trial balance, the income statement needs to be reset to 0 to prepare for the up-coming accounting period. The balance sheet is carried over. The after-closing trial balance contains ONLY the balance sheet accounts.
: In this case, they will be balanced out w
|
b*****d
发帖数: 184 | 17 Hello, I think you are a bit confused about RE on TB. Here is the process:
1) Initial TB
...
RE Balance = A (from the previous period) = 680K
...
2) Accounting prepares IS and hands it over to tax along with TB and BS
on TB: RE = A = 680K
on BS: RE = B = Beginning RE + Net Income - Dividend
= 680K + 3600K - 2600K = 1,680K (Tax does not use this in step 3)
3) Tax accountant calculates tax based on the data given
Tax = C
4) Tax hands this back to accounting to make adjustment for closing
Accounti
【在 l****q 的大作中提到】
: Thanks!
: The steps you listed actually clarify what confuses me.
: “By the point of time the question is presented to you, the following
: entries
: have been made:
: Step 1:
: Dr A/R 100
: Cr Revenue 100
: Dr Expense/COGS 90
: Cr Inventory 90
|
