Activity 4: Problem Solving Directions: Journal the transactions using the general journal, post transactions to the general ledger, and make an adjusted trial balance: Use a three-column columnar sheet for your answer. Charts of Accounts 1000 Cash 1200 Accounts Receivable 1300 Prepaid Rent 1400 Office Supplies 1500 Office Equipment 1600 Laundry Equipment 2000 Accounts Payable 3000 Deyro, Capital 3100 Deyro, Drawings 4000 Service Revenues 5000 Salaries Expenses 5100 Utilities Expenses March 1 Mr. Laban Deyro invested P50,000 cash in his laundry business. Rented office space and paid P2,000 cash for March and April. Purchased laundry equipment for P25,000 with P10,000 as downpayment and the balances on equal installment for 5 months. 4. Purchase office supplies by paying P1,000 cash. 5. Completed laundry service and collected 550 cash. Purchased P1,550 office equipment on credit. 15 Completed laundry service on credit in the amount of P5,000. 17 Purchased P500 office supplies on credit. 19 Paid the office equipment purchased on March 6, 2020. 23 Billed client for P2,500 for service completed and balance will due in 30 days. 26 Received P2,500 cash for the service rendered on March 15, 2020. 28 Paid assistant's salary of P1,500 cash for this month. Paid 550 cash for this month's utility bill. 28 28 Mr. Deyro withdrew P1,500 cash from the business for personal use. 2022.04
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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