Lightning Advisory Service's Unadjusted and Adjusted Trial Balances on December

question 89

Essay

Lightning Advisory Service's unadjusted and adjusted trial balances on December 31, 2020 are as follows:

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Definitions:

Assets Sold

Items of value or resources owned by a company that have been disposed of or sold to another party.

Deficit

Amount by which net income falls short of salary and interest allowance. Also an abnormal, or debit, balance in a partner’s capital account.

Post-closing Account Balances

The financial position of accounts after all adjustments, including closing entries, have been made at the end of an accounting period.

Non-cash Assets

Items of value that a company owns but cannot be easily converted to cash, such as real estate, equipment, and patents.