ANSWER THE WORKSHEET USING THE JOURNAL entries apr 2022 Transactions PARTICULARS DR. CR. 4 The following assets were received from cool : cash, $55,000; accounts receivable, $6,500; Dr. Cash $ 55,000.00 supplies, $6,250; and office equipment, $12,500. There were no liabilities received. Dr. Accounts Receivable $ 6,500.00 Dr. Supplies $ 6,250.00 Dr. Office Equipment $ 12,500.00 Cr. Capital $ 80,250.00 4 Paid three months rent on a lease rental contract, $9,500. Dr. Prepaid rent $ 9,500.00 Cr. Cash $ 9,500.00 4 Paid the premium on property and casualty insurance policies for the year, $6,800. Dr. Insurance expense $ 6,800.00 Cr. Cash $ 6,800.00 7 Purchased additional office furniture on account from Slytherin Company, $6,800. Dr. Office Equipment $ 6,800.00 Cr. Accounts Payable $ 6,800.00 8 Received cash from clients on account, $ 5,800. Dr. Cash $ 5,800.00 Cr. Accounts Receivable $ 5,800.00 11 Paid cash for newspaper advertisement, $5,120. Dr. Advertising expense $ 5,120.00 Cr. Cash $ 5,120.00 12 Paid dani Company $5,800 for debt incurred on April 7. Dr. Accounts Payable $ 5,800.00 Cr. Cash $ 5,800.00 15 Recorded services provided on account for period April 4-15, $7,250. Dr. Accounts Receivable $ 7,250.00 Cr. Sales Revenue $ 7,250.00 15 Paid part-time receptionist for two weeks salary, $5,400. Dr. Salaries expense $ 5,400.00 Cr. Cash $ 5,400.00 15 Recorded cash from clients for fees earned April 4-15, $8,175. Dr. Cash $ 8,175.00 Cr. Sales Revenue $ 8,175.00 18 Paid cash for supplies, $5,750. Dr. Supplies $ 5,750.00 Cr. Cash $ 5,750.00 22 Recorded services provided on account for April 18-22, $6,100. Dr. Accounts Receivable $ 6,100.00 Cr. Sales Revenue $ 6,100.00 22 Recorded cash from clients for fees earned April 18-22, $6,850. Dr. Cash $ 6,8
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.
ANSWER THE WORKSHEET USING THE
| apr | 2022 | Transactions | PARTICULARS | DR. | CR. | |||||
| 4 | The following assets were received from cool : cash, $55,000; |
Dr. Cash | $ 55,000.00 | |||||||
| supplies, $6,250; and office equipment, $12,500. There were no liabilities received. | Dr. Accounts Receivable | $ 6,500.00 | ||||||||
| Dr. Supplies | $ 6,250.00 | |||||||||
| Dr. Office Equipment | $ 12,500.00 | |||||||||
| Cr. Capital | $ 80,250.00 | |||||||||
| 4 | Paid three months rent on a lease rental contract, $9,500. | Dr. Prepaid rent | $ 9,500.00 | |||||||
| Cr. Cash | $ 9,500.00 | |||||||||
| 4 | Paid the premium on property and casualty insurance policies for the year, $6,800. | Dr. Insurance expense | $ 6,800.00 | |||||||
| Cr. Cash | $ 6,800.00 | |||||||||
| 7 | Purchased additional office furniture on account from Slytherin Company, $6,800. | Dr. Office Equipment | $ 6,800.00 | |||||||
| Cr. Accounts Payable | $ 6,800.00 | |||||||||
| 8 | Received cash from clients on account, $ 5,800. | Dr. Cash | $ 5,800.00 | |||||||
| Cr. Accounts Receivable | $ 5,800.00 | |||||||||
| 11 | Paid cash for newspaper advertisement, $5,120. | Dr. Advertising expense | $ 5,120.00 | |||||||
| Cr. Cash | $ 5,120.00 | |||||||||
| 12 | Paid dani Company $5,800 for debt incurred on April 7. | Dr. Accounts Payable | $ 5,800.00 | |||||||
| Cr. Cash | $ 5,800.00 | |||||||||
| 15 | Recorded services provided on account for period April 4-15, $7,250. | Dr. Accounts Receivable | $ 7,250.00 | |||||||
| Cr. Sales Revenue | $ 7,250.00 | |||||||||
| 15 | Paid part-time receptionist for two weeks salary, $5,400. | Dr. Salaries expense | $ 5,400.00 | |||||||
| Cr. Cash | $ 5,400.00 | |||||||||
| 15 | Recorded cash from clients for fees earned April 4-15, $8,175. | Dr. Cash | $ 8,175.00 | |||||||
| Cr. Sales Revenue | $ 8,175.00 | |||||||||
| 18 | Paid cash for supplies, $5,750. | Dr. Supplies | $ 5,750.00 | |||||||
| Cr. Cash | $ 5,750.00 | |||||||||
| 22 | Recorded services provided on account for April 18-22, $6,100. | Dr. Accounts Receivable | $ 6,100.00 | |||||||
| Cr. Sales Revenue | $ 6,100.00 | |||||||||
| 22 | Recorded cash from clients for fees earned April 18-22, $6,850. | Dr. Cash | $ 6,850.00 | |||||||
| Cr. Sales Revenue | $ 6,850.00 | |||||||||
| 25 | Recorded cash from clients on account, $6,600. | Dr. Cash | $ 6,600.00 | |||||||
| Cr. Accounts Receivable | $ 6,600.00 | |||||||||
| 27 | Paid part-time receptionist for two weeks salary, $5,400. | Dr. Salaries expense | $ 5,400.00 | |||||||
| Cr. Cash | $ 5,400.00 | |||||||||
| 28 | Paid telephone bill for April, $5,130. | Dr. Telephone expense | $ 5,130.00 | |||||||
| Cr. Cash | $ 5,130.00 | |||||||||
| 29 | Paid electic bill for April, $5,200. | Dr. Utilities expense | $ 5,200.00 | |||||||
| Cr. Cash | $ 5,200.00 | |||||||||
| 29 | Recorded cash from clients for fees earned April 25-29, $7,050. | Dr. Cash | $ 7,050.00 | |||||||
| Cr. Sales Revenue | $ 7,050.00 | |||||||||
| 29 | Recorded services provided on account for April 25-29, $6,000 | Dr. Accounts Receivable | $ 6,000.00 | |||||||
| Cr. Sales Revenue | $ 6,000.00 | |||||||||
| 29 | cool received $9,500 from the company as his salary. | Dr. Salaries expense | $ 9,500.00 | |||||||
| Cr. Cash | $ 9,500.00 | |||||||||
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