anuary 15 You conducted the webinar with Fran Barr. When you were done, you sent her an electronic invoice (bill) for $75. She asked if she could electronically pay you $35 at that point and the remainder the following week. While you would have much preferred to collect all of the money right then, you agreed to let her pay the remainder on January 22. Consulting Revenue 35 January 15 Jenny Chen came into your store to discuss an interesting proposal. She asked your store to provide graphic design training/consultations to a group of local non-profit organizations. Jenny said that you would be “on call” for 3 months, and the organizations were willing to pay you in advance for 3 months. You negotiated a fee of $800 per month, and you will begin providing consulting services on 1/16. Jenny wrote your company a check for the upcoming 3 months. Consulting Revenue 2400 January 20 A check for the balance that Fran Barr owed you arrived, paying off her account in full. Consulting Revenue 40 January 25 Two invoices arrived. One was for $90 for the telephone service for January. It was due on February 10 – so you decided to wait until then to make payment to Southern Telephone. The other bill of $378 was for the electricity for January, and it was due at the end of January. You immediately wrote a check to Southern Electric for the amount owed. Utility Expense 378 January 30 You completed work for several cash-paying customers (other than those mentioned in the above transactions) during the month. Rather than record each of these cash-paying customers separately, you kept a record of all the cash receipts in a separate journal. The total of the cash received for computer repair services provided was $4,457. Service Revenue 4457 January 31 You decided to pay Williams Supply Co. the amount you owed them since the payment was due soon (see the transaction on January 5). Repair Supplies 3500 END Of Daily Entries FOR JANUARY! Be sure to save this document and upload into Canvas!
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.
January 15
You conducted the webinar with Fran Barr. When you were done, you sent her an electronic invoice (bill) for $75. She asked if she could electronically pay you $35 at that point and the remainder the following week. While you would have much preferred to collect all of the money right then, you agreed to let her pay the remainder on January 22.
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Consulting Revenue |
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35 |
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January 15
Jenny Chen came into your store to discuss an interesting proposal. She asked your store to provide graphic design training/consultations to a group of local non-profit organizations. Jenny said that you would be “on call” for 3 months, and the organizations were willing to pay you in advance for 3 months. You negotiated a fee of $800 per month, and you will begin providing consulting services on 1/16. Jenny wrote your company a check for the upcoming 3 months.
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Consulting Revenue |
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2400 |
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January 20
A check for the balance that Fran Barr owed you arrived, paying off her account in full.
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Consulting Revenue |
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40 |
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January 25
Two invoices arrived. One was for $90 for the telephone service for January. It was due on February 10 – so you decided to wait until then to make payment to Southern Telephone. The other bill of $378 was for the electricity for January, and it was due at the end of January. You immediately wrote a check to Southern Electric for the amount owed.
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Utility Expense |
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378 |
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January 30
You completed work for several cash-paying customers (other than those mentioned in the above transactions) during the month. Rather than record each of these cash-paying customers separately, you kept a record of all the cash receipts in a separate journal. The total of the cash received for computer repair services provided was $4,457.
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Service Revenue |
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4457 |
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January 31
You decided to pay Williams Supply Co. the amount you owed them since the payment was due soon (see the transaction on January 5).
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Repair Supplies |
3500 |
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END Of Daily Entries FOR JANUARY! Be sure to save this document and upload into Canvas!
Journal Entry
In an organization's accounting system, a journal entry documents a commercial transaction. The foundation of the double-entry accounting method, which has been around for centuries, is made up of journal entries. They enable tracking of the purposes for which a company has spent its resources and the sources of those resources.
Every transaction must be documented in at least two accounts according to the double-entry accounting technique. For instance, a cash purchase of supplies by a company will be recorded in both the supply account and the cash account. Let's start with the fundamentals before we go too far.
WHAT PURPOSE DOES A JOURNAL ENTRY SERVE?
It can be simple to overlook the function of the simple journal entry in the era of automated accounting software. Before all of this mechanization, entries were done by hand into journals, which were formerly actual physical books of paper (like a journal!) albeit they may now be Excel sheets.
Accounting journal entries are transferred from the journals and posted to the general ledger in order to record financial transactions in the accounting system. Modern accounting software handles the majority of this process automatically, but it's crucial to understand what's happening since there are occasions when manual entries will need to be made to correct or alter account balances at the end of the day.
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