1. Prepare closing entries in general journal form dated May 31, 20--. Do not enter the posting references until you complete part 2. If an amount box does not require an entry, leave it blank. 2. Post the closing entries to the T accounts following the top-down journal entry order. If there is more than one closing entry for an account, enter in the order given in the journal . Then, complete the posting in part 1. Use the following partial listing of T accounts to complete this exercise. Cash 101 Bal. 600 Accounts Receivable 122 Bal. 1,800 Wages Payable 219 Bal. 500 Mark Thrasher, Capital 311 Bal. 8,000 Mark Thrasher, Drawing 312 Bal. 800 Income Summary 313 Lawn Service Fees 401 Bal. 5,000 Wages Expense 511 Bal. 400 Advertising Expense 512 Bal. 600 Travel Expense 515 Bal. 100 Supplies Expense 524 Bal. 900 Insurance Expense 535 Bal. 300 Postage Expense 536 Bal. 40 Gas and Oil Expense 538 Bal. 700 Miscellaneous Expense 549 Bal. 200 What are the closing entries and post closing entries?
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
1. Prepare closing entries in general journal form dated May 31, 20--. Do not enter the posting references until you complete part 2. If an amount box does not require an entry, leave it blank.
2. Post the closing entries to the T accounts following the top-down journal entry order. If there is more than one closing entry for an account, enter in the order given in the journal . Then, complete the posting in part 1.
Use the following partial listing of T accounts to complete this exercise.
| Cash | 101 | ||
|---|---|---|---|
| Bal. | 600 |
| 122 | |||
|---|---|---|---|
| Bal. | 1,800 |
| Wages Payable | 219 | ||
|---|---|---|---|
| Bal. | 500 |
| Mark Thrasher, Capital | 311 | ||
|---|---|---|---|
| Bal. | 8,000 |
| Mark Thrasher, Drawing | 312 | ||
|---|---|---|---|
| Bal. | 800 |
| Income Summary | 313 | ||
|---|---|---|---|
| Lawn Service Fees | 401 | ||
|---|---|---|---|
| Bal. | 5,000 |
| Wages Expense | 511 | ||
|---|---|---|---|
| Bal. | 400 |
| Advertising Expense | 512 | ||
|---|---|---|---|
| Bal. | 600 |
| Travel Expense | 515 | ||
|---|---|---|---|
| Bal. | 100 |
| Supplies Expense | 524 | ||
|---|---|---|---|
| Bal. | 900 |
| Insurance Expense | 535 | ||
|---|---|---|---|
| Bal. | 300 |
| Postage Expense | 536 | ||
|---|---|---|---|
| Bal. | 40 |
| Gas and Oil Expense | 538 | ||
|---|---|---|---|
| Bal. | 700 |
| Miscellaneous Expense | 549 | ||
|---|---|---|---|
| Bal. | 200 |
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