Activity 1- ACCHT 221 - RECORDING TRANSACTIONS ; POSTING TO LEDGER AND PREPARATION OF TRIAL BALANCI Remy opened her Tours4Fun business. During the first month, January, she completed the following transactions: Began business by investing cash of P300,000 a office equipment valued at P40,000, shop furniture worth a. P 65,000. Paid rent for the month, P20,000. b. Bought additional office equipment from Kapamilya Store on credit, P25,000. Bought shop supplies for cash P8,000. Received P20,000 from Sally for passporting services rendered. Purchased another office equipment for cash for P18,000. Completed work for Novy on credit, at P38,000. Paid telephone and internet services worth P5,200. Paid Kapamilya store in full. Received cash from customers for services rendered worth P24,000. с. d. е. f. g. h. i. j. Received P18,000 from Novy as partial payment of the amount she owes the Tours4Fun. Paid the salary of the office staff, P15,000. k. I. Bought another shop furniture worth P10,000 on credit. Miscellaneous expenses paid during the month were paid worth P27,000. m. n. Using the following Account Titles, answer the questions found in the attached google forms. ACCOUNT TITLES: Cash Accounts receivable Shop supplies Office equipment Shop furniture Accounts payable Remy, capital Service revenue Rent expense Telephone and wifi expense Salary expense Miscellaneous expense
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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