Final answer:
To calculate the merchandise balance, subtract total imports from total exports, and to determine the current account balance, sum the merchandise balance with other current account components after making necessary year-end adjustments.
Step-by-step explanation:
The student's question pertains to the calculation of merchandise balance and current account balance as part of an accounting exercise, which is likely related to a financial accounting or international trade course. To calculate the merchandise balance, one would typically subtract total imports from total exports at the end of an accounting period. The current account balance includes the merchandise balance but also factors in net income from abroad and net current transfers.
To complete such an adjustment, the student should review the ledger accounts and make necessary year-end adjustments, which usually consist of accrued revenues, expenses, supplies used, depreciation, and possibly adjustments to prepaid accounts. The specific amount of the adjustment would depend on the initial and year-end balances of these accounts. For instance, if the prepaid insurance account had a beginning balance and no additional premiums were paid, the adjustment would be the portion of the premium that applies to the current period.
Once the adjustments are posted, the student can calculate the ending balances by adding or subtracting the adjustment amounts from the initial balances. Tables such as Table 23.2 or Table 10.2 mentioned in the question are likely designed to organize these figures systematically. The merchandise balance is computed by subtracting imports from exports, and the current account balance can be determined by summing the merchandise balance with other components of the current account.