Mr. Juan Lopez opened a mini grocery store with business ame lopez Freta Mart. Operations began on Apr 1, 20xX, and the following transactions were completed during the month: 1. The business was registered as single proprietorship with the Department of Trade and Industry, Juan Lope invested P39,000. 2 Bought computer equipment for P10,000 cash. 2 Bought merchandise on account from LOWTOWN Supply Co. P15,900, Term, 2/10, n/30. 3. Bought office supplies on cash basis for P700 4. Sold merchandize on account P15,200 FOB Destination, terms 2/10, n/30. 5. Paid P200 freight on April 4 sale. 6. Received credit memo LOWTOWN Supply Co. for merchandise return P300. 11 Paid LOWTOWN. 13.Collected from April 4 customers. 14 Bought merchandise on cash basis for P14,400. 15Salaries paid P1,500. 16.Borrowed money from RCBC Bank, signed a promissory note for p12,000. 17. Received refund from a supplier on cash purchase of April 14, P500 18. Bought merchandize from MESDA, P14,200 FOB Shipping, term, 2/10, n/30. 20 Paid freight on April 18 purchase p700. 23.Sold merchandise for P16.400. 26.Bought merchandise for cash P12.300. 27.Paid MESDA on April 18 purchase, p9,000. No discount allowed on partial payment. 27.Paid MESDA on April 18 purchase, 9,000. No discount allowed on partial payment. 28 J. Lopez get cash from the business, P2,008. 29. Made reftund to cash customer for defective merchandise, P900. 30 Sold merchandise on account, P13,700 2/30. 30Paid the following: Advertising P1 ,00, Utilities P400, Rent P3,500, Salaries P1,50030 Inventory April 30, P25,000 Requirement: TRIAL BALANCE
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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