A. Put an (*) before the number if it is part in the preparation of Statement of Comprehensive Income and (NA) if it is not part in the preparation of SCI. ----- 1. The company made an initial cash deposit amounting to P80,000. ----- 2. The owner bought shop's office chairs and tables for P20,000, paying P5,000 and the balance on account. ----- 3. Miss Wow paid advance rent to P24,000. ----- 4. Supplies expense for the month is P12,500. ----- 5. The company's total revenue for the month of July amounted to P150,000. ----- 6. An employee of the shop was paid for P7,500. ----- 7. Her receivable amounted to P3,500 for services made to Customer A. ----- 8. The owner paid for internet subscription at P1,700. ----- 9. Light and water expense for the month amount to P8,000. ----- 10. Miss Wow made a loan to OOTD Bank amounting to P50,000 payable in 5 years. B. Miss Wow, the service business owner, ask you to prepare her statement of comprehensive income for the month
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.
A. Put an (*) before the number if it is part in the preparation of Statement of Comprehensive Income and (NA) if it is not part in the preparation of SCI.
----- 1. The company made an initial cash deposit amounting to P80,000.
----- 2. The owner bought shop's office chairs and tables for P20,000, paying P5,000 and
the balance on account.
----- 3. Miss Wow paid advance rent to P24,000.
----- 4. Supplies expense for the month is P12,500.
----- 5. The company's total revenue for the month of July amounted to P150,000.
----- 6. An employee of the shop was paid for P7,500.
----- 7. Her receivable amounted to P3,500 for services made to Customer A.
----- 8. The owner paid for internet subscription at P1,700.
----- 9. Light and water expense for the month amount to P8,000.
----- 10. Miss Wow made a loan to OOTD Bank amounting to P50,000 payable in 5
years.
B. Miss Wow, the service business owner, ask you to prepare her statement of comprehensive income for the month.
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