After several years with a large accounting firm, Virgie Dal decided to establish her own accounting practice. The following transactions of Virgie Dal, CPA were completed during 2012: May 2 – Transferred of ₱92,500 cash from a personal savings account to a checking account, Virgie Dal ,CPA. 3- Acquired office equipment on account from Gicain Furnitire, ₱36,800. 4- Acquired office supplies on account from Lorenzo Office Supply Company ₱17,100. 6- Performed accounting services for Cayao Computer Company and submitted bill of ₱29,200 for those services. 7- Paid for accounting and tax books for use in the practice, ₱19,500. 8- Paid Lorenzo Office Supply Company, ₱ 4,100 on account. 10- Acquired a condominium unit for the accounting practice, 265,000. A down payment of ₱38,000 was made and issued a note payable for the remaining ₱227,000. 12-Paid salaries, ₱14,200 13- Received ₱9,750 from Cayao Computer Company, billed on May 6. 16- Paid telephone expense, ₱650. 19- Received cash in the amount of ₱14,600 from Ponferada Book Company for accounting service rendered for the month. 22-Acquired office supplies on account from Lorenzo Office Supply Company, ₱ 4,650. 23- Withdraw ₱8,150 for personal use 25- Paid salaries, ₱10,300 26-Billed Bosante Exporters ₱31, 600 for accounting services rendered. 27- Paid PICPA-Tacloban ₱5,500 for professional dues. 28- Paid ₱3,250 rent on an office- copying machine. Required: 1. Prepare the journal entries for May transactions. 2. Post the entries to the ledger accounts, using the account numbers for cross-reference and using journal page number 1. The following accounts will be needed: 110 Cash; 120 Accounts Receivable;130 Office Supplies; 140 Office Condominium;150 Office Equipment; 160 Accounting Library;210 Notes payable; Accounts Payable 220; 310 Dal, Capital; 320 Dal, Withdrawals; 410 Accounting Revenues;510 Salaries Expense; 520 Rent Expense, 530 Telephone Expense; 540 Professional Dues Expense. 3. Prepare a 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.
After several years with a large accounting firm, Virgie Dal decided to establish her own accounting practice. The following transactions of Virgie Dal, CPA were completed during 2012:
May 2 – Transferred of ₱92,500 cash from a personal savings account to a checking account, Virgie Dal ,CPA.
3- Acquired office equipment on account from Gicain Furnitire, ₱36,800.
4- Acquired office supplies on account from Lorenzo Office Supply Company ₱17,100.
6- Performed accounting services for Cayao Computer Company and submitted bill of ₱29,200 for those services.
7- Paid for accounting and tax books for use in the practice, ₱19,500.
8- Paid Lorenzo Office Supply Company, ₱ 4,100 on account.
10- Acquired a condominium unit for the accounting practice, 265,000. A down payment of ₱38,000 was made and
issued a note payable for the remaining ₱227,000.
12-Paid salaries, ₱14,200
13- Received ₱9,750 from Cayao Computer Company, billed on May 6.
16- Paid telephone expense, ₱650.
19- Received cash in the amount of ₱14,600 from Ponferada Book Company for accounting service rendered for the
month.
22-Acquired office supplies on account from Lorenzo Office Supply Company, ₱ 4,650.
23- Withdraw ₱8,150 for personal use
25- Paid salaries, ₱10,300
26-Billed Bosante Exporters ₱31, 600 for accounting services rendered.
27- Paid PICPA-Tacloban ₱5,500 for professional dues.
28- Paid ₱3,250 rent on an office- copying machine.
Required:
1. Prepare the journal entries for May transactions.
2. Post the entries to the ledger accounts, using the account numbers for cross-reference and using journal page
number 1. The following accounts will be needed: 110 Cash; 120 Accounts Receivable ;130 Office Supplies; 140
Office Condominium;150 Office Equipment; 160 Accounting Library;210 Notes payable; Accounts Payable 220;
310 Dal, Capital; 320 Dal, Withdrawals; 410 Accounting Revenues;510 Salaries Expense; 520 Rent Expense, 530
Telephone Expense; 540 Professional Dues Expense.
3. Prepare a trial balance
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