Accounts Payable Subsidiary Ledger The cash payments and purchases journal for Outdoor Artisan Landscaping follow. The accounts payable control account has a June 1, 20Y1, balance of $4,820, consisting of an amount owed to Augusta Sod Co. CASH PAYMENTS JOURNAL Page 31 Date Ck. No. Account Debited Post Ref. Other Accounts Dr. Accounts Payable Dr. Cash Cr. 20Y1 June 4 203 Augusta Sod Co. √ 4,820 4,820 5 204 Utilities Expense 54 630 630 15 205 Home Centers Lumber Co. √ 7,900 7,900 24 206 Nu Lawn Fertilizer √ 1,400 1,400 30 630 14,120 14,750 (√) (21) (11) PURCHASES JOURNAL Page 22 Date Account Credited Post Ref. Accounts Payable Cr. Landscaping Supplies Dr. Other Accounts Dr. Post Ref. Amount 20Y1 June 3 Home Centers Lumber Co. √ 7,900 7,900 7 Concrete Equipment Co. √ 3,660 Equipment 18 3,660 14 Nu Lawn Fertilizer √ 1,400 1,400 24 Augusta Sod Co. √ 9,690 9,690 29 Home Centers Lumber Co. √ 4,920 4,920 30 27,570 23,910 3,660 (21) (14) (√) Prepare a schedule of the accounts payable creditor balances. If an amount is zero, enter "0". Outdoor Artisan Landscaping Accounts Payable Creditor Balances June 30, 20Y1 Augusta Sod Co. $ Concrete Equipment Co. Home Centers Lumber Co. Nu Lawn Fertilizer Total accounts payable $ After you prepare the schedule of accounts payable creditor balances, determine that the total agrees with the ending balance of the Accounts Payable controlling account. Outdoor Artisan Landscaping Accounts Payable (Controlling) Balance, June 1, 20Y1 $ Total credits (from purchases journal) Total debits (from cash payments journal) Balance, June 30, 20Y1 $
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.
Accounts Payable Subsidiary Ledger
The cash payments and purchases journal for Outdoor Artisan Landscaping follow. The accounts payable control account has a June 1, 20Y1, balance of $4,820, consisting of an amount owed to Augusta Sod Co.
| CASH PAYMENTS JOURNAL | Page 31 | ||||||||
| Date | Ck. No. | Account Debited | Post Ref. | Other Accounts Dr. | Accounts Payable Dr. | Cash Cr. | |||
| 20Y1 | |||||||||
| June 4 | 203 | Augusta Sod Co. | √ | 4,820 | 4,820 | ||||
| 5 | 204 | Utilities Expense | 54 | 630 | 630 | ||||
| 15 | 205 | Home Centers Lumber Co. | √ | 7,900 | 7,900 | ||||
| 24 | 206 | Nu Lawn Fertilizer | √ | 1,400 | 1,400 | ||||
| 30 | 630 | 14,120 | 14,750 | ||||||
| (√) | (21) | (11) |
| PURCHASES JOURNAL | Page 22 | |||||||||
| Date | Account Credited | Post Ref. | Accounts Payable Cr. | Landscaping Supplies Dr. | Other Accounts Dr. | Post Ref. | Amount | |||
| 20Y1 | ||||||||||
| June 3 | Home Centers Lumber Co. | √ | 7,900 | 7,900 | ||||||
| 7 | Concrete Equipment Co. | √ | 3,660 | Equipment | 18 | 3,660 | ||||
| 14 | Nu Lawn Fertilizer | √ | 1,400 | 1,400 | ||||||
| 24 | Augusta Sod Co. | √ | 9,690 | 9,690 | ||||||
| 29 | Home Centers Lumber Co. | √ | 4,920 | 4,920 | ||||||
| 30 | 27,570 | 23,910 | 3,660 | |||||||
| (21) | (14) | (√) |
Prepare a schedule of the accounts payable creditor balances. If an amount is zero, enter "0".
| Outdoor Artisan Landscaping | |
| Accounts Payable Creditor Balances | |
| June 30, 20Y1 | |
| Augusta Sod Co. | $ |
| Concrete Equipment Co. | |
| Home Centers Lumber Co. | |
| Nu Lawn Fertilizer | |
| Total accounts payable | $ |
After you prepare the schedule of accounts payable creditor balances, determine that the total agrees with the ending balance of the Accounts Payable controlling account.
| Outdoor Artisan Landscaping | |
| Accounts Payable | |
| (Controlling) | |
| Balance, June 1, 20Y1 | $ |
| Total credits (from purchases journal) | |
| Total debits (from cash payments journal) | |
| Balance, June 30, 20Y1 | $ |
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