1.Larry invested $80,000 in the business January 1 exchanging shares of common stock in the company. 2. Beginning of Jan 1 Larry purchase a truck for $30,000 as cash use for five year 3. Begin Jan 1 , larry purchase equipment for $20,000 in cash 4. Larry company buy parts and supply inventory of total $71,000 on account 5. Total sale of year is $300,000 , and $100,000 sale on account , $50,000 were cash , $150,000 were credit card , credit card charge 2% for each sale 6. parts and supplies inventory used was $62,500 7. Rent $1000 per year and paid as cash 8. Insurance year = $1200 as cash 9. All employee
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.Larry invested $80,000 in the business January 1 exchanging shares of common stock in the company.
2. Beginning of Jan 1 Larry purchase a truck for $30,000 as cash use for five year
3. Begin Jan 1 , larry purchase equipment for $20,000 in cash
4. Larry company buy parts and supply inventory of total $71,000 on account
5. Total sale of year is $300,000 , and $100,000 sale on account , $50,000 were cash , $150,000 were credit card , credit card charge 2% for each sale
6. parts and supplies inventory used was $62,500
7. Rent $1000 per year and paid as cash
8. Insurance year = $1200 as cash
9. All employee earned 185,000 in salaries and wage , with 180,000 paycheck and $5000 for paycheck
9. A customer went bankruptcy and don’t wanna paid $3,000 total of $22,000
10. Remaining operating expense $7,000 all paid with cash
11 OCT 1, larry company borrowed $25,000 from bank , the loan is 12% interest rate, payable annually on oct 1
12, Larry company still owed supplier of $8,200 at the end of year
13, in december , pany invested $55,000 in cash in the stock of ABC inc
14. Dec 31 , company sold equipment for $2,000
15, company tax rate 15%, wait until April 15 of his second year to pay the income tax bill.
01. Prepare a statement of cash flow for this year
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