Unit 6 Check Figures Problem 4 6a1 Unadjusted Trial Balance

Unit 6 Check Figuresproblem 4 6a1 Unadjusted Trial Balance 668002

Analyze the provided financial data and complete the necessary accounting entries and financial statements. This includes preparing the unadjusted and adjusted trial balances, journal entries, post-closing trial balance, income statement, statement of owner’s equity, and balance sheet for Bottom Line Consulting as of June 30, 2010. Ensure that all journal entries are accurately recorded with correct balances, and all financial statements reflect the appropriate totals and balances. The process involves performing adjusting entries, closing entries, and preparing complete financial summaries following standard accounting practices. Accurately list accounts in order of liquidity or account classification, ensuring totals balance appropriately and reflect the financial position accurately.

Paper For Above instruction

The comprehensive accounting process for Bottom Line Consulting as of June 30, 2010, begins with analyzing and preparing the unadjusted trial balance, which is foundational for accurate financial reporting. The unadjusted trial balance offers an initial summary of all ledger balances before adjustments, with reported totals of $66,800 for debits and credits, ensuring the trial balances are initially balanced. From this, adjusting journal entries are recorded to account for accrued, deferred, and estimated expenses or revenues that have occurred but are not yet reflected in the unadjusted trial balance. These adjustments include items like prepaid rent, prepaid insurance, office equipment depreciation, and unearned fees, which impact the accurate reporting of assets and liabilities on the financial statements.

Following the adjustments, the adjusted trial balance consolidates all changes, recalculating totals to ensure debits and credits are balanced after adjustments. The adjusted trial balance then serves as the basis for preparing the income statement, which reports revenues—primarily fees earned—and expenses, such as salaries, rent, supplies, depreciation, insurance, and miscellaneous expenses. Subtracting total expenses from total revenues yields the net income. The statement of owner’s equity begins with the owner’s opening capital balance, adds net income, and subtracts withdrawals to determine the closing capital balance.

Next, closing entries are performed to transfer revenue and expense balances to income summary and then to owner’s capital, resetting temporary accounts for the new period. The post-closing trial balance verifies that debits equal credits after closing entries, listing remaining balances of permanent accounts like assets, liabilities, and owner’s equity. The balance sheet consolidates the ending balances of assets, liabilities, and owner’s equity, confirming the company's financial position at period-end.

Throughout this process, it is crucial to ensure that each step reflects accurate calculations and conforms to generally accepted accounting principles, with accounts listed in order of liquidity or classification. Proper recording of journal entries—both initial adjustments and closing entries—is essential for maintaining accurate and compliant financial statements. Each statement and balance must align mathematically, confirming the integrity of the accounting cycle and providing meaningful insights into the company's financial health at June 30, 2010.

References

• Benston, G. J. (2006). Financial accounting and reporting: A practical guide. Harper Business.
• Glautier, M., & Underdown, B. (2017). Accounting theory and practice. Pearson Education.
• Higgins, R. C. (2012). Analysis for financial management. McGraw-Hill Education.
• Horrigan, J. (2012). Accounting information systems. John Wiley & Sons.
• Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2019). Intermediate accounting. Wiley.
• Needles, B. E., & Powers, M. (2015). Financial accounting. Cengage Learning.
• O’Reilly, C. A., & Tushman, M. L. (2008). Organizational ambidexterity: Past, present, and future. Academy of Management Perspectives, 22(4), 341–354.
• Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2019). Financial accounting theory and analysis: Text and cases. Wiley.
• Weygandt, J. J., Kieso, D. E., & Kimmel, P. D. (2020). Financial accounting. Wiley.
• Zappa, S. (2004). Practical managerial accounting. McGraw-Hill Education.