41)The total credits in the statement of financial position columns of a worksheet are P2,161,200, while the total debits in the income statement columns are P740,400. The total debits in the adjusted trial balance are P2,970,000. How much is the profit (loss) for the period? a. 68,400 b. 80,800 A company paid its property taxes on October 1 for the period October 1, year 1 to September 30, year 2 recorded using expense method. When the payment was made, the company debited property taxes expense and credited cash for P8,000. 42)The adjusting entry at December 31, year 1 would include which of the following: a. Dr. prepaid property taxes, P6,000. b. Cr. prepaid property taxes, P6,000. c. Cr. property tax expense, P2,000. d. Dr. property tax expense, P6,000. ABC Co. prepared its unadjusted trial balance and determined that the totals of debits and credits do not equal. Further investigation revealed the following: (a) The debit posting for a cash sale was omitted. (b) The balance of Inventory was listed as a credit instead of debit (c) The balance of Insurance expense was listed as Rent expense (d) Unearned interest income was listed as a debit instead of credit 43) How much is the difference between the total debits and total credits in the trial balance? a. 16,000 excess debits b. 16,000 excess credits On January 1, 2020 the adjusted balance of cash is P100,000. During the year the following transaction occurred: Receipts: Cash sales Collection of receivable Proceeds from sale of PPE P100.000 Total 44)On December 31,2020, how much is the adjusted balance of cash? a. 100,000 b. 200,000 On December 31, 2021, West Company had the following cash balances: Cash in banks Petty cash funds (all funds were reimbursed on 12/31/21) Cash in banks includes P600,000 of compensating balances against short-term borrowing arrangements at December 31, 2021. The compensating balances are not legally restricted as to withdrawal by West. 45)In the current assets section of West's December 31, 2021, balance sheet (statement of financial position), what total amount should be reported as cash? a. 1,200,000 b. 1,250,000 At December 31, 2023, ABC Co. had the following balances in the accounts it maintains at XYZ Bank: c. (68,400) d. (80,800) 2,000 12,000 3,000 5.000 c. 22,000 excess debits d. 22,000 excess credits Disbursements: Payment of payables Purchase of inventories Payment of expenses total P50,000 P30,000 P20.000 P100,000 P200,000 P50,000 P350.000 c. 350,000 d. 250,000 P1,800,000 50,000 c. 1,800,000 d. 1,850,000 PNB -Checking account #101 PNB -Checking account #201 Money market account 90-day certificate of deposit, due 2/28/24 180-day certificate of deposit, due 3/15/24 ABC Co. cassifies debt securities acquired three months or less before maturity date as cash equivalents. 46)what amount should ABC Co. report as cash and cash equivalents? a. 330,000 b. 250,000 ABC Company is preparing its March 31, 2021 bank reconciliation. The following information was 175,000 (10,000) 25,000 50,000 80,000 c. 240,000 d. 225,000 determined: The cash balance per books is P280,000, while the cash balance per bank is P320,000. • Credit memo - P20,000 Debit memo - P15,000 Deposits in transit - P5,000 Outstanding 47)How much is the adjusted balance of cash? a. 370,000 b. 330,000 C. 285,000 d. 320,000 Well Co. has the following information on Feb 28,2021: Balance per books Credit memos Debit memos Payment of liabilities was recorded by Well Co. as P200 instead of P20 380 670 400
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.
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