Application Problem Journalizing transactions and proving and ruling amulticolumn journal LOS, 4, 5, 6, 7, 8, 9Mundt Services uses the following accounts.Cash Mikaela Mundt, Capital Accounts Receivable-J. Lepowsky Mikaela Mundt, DrawingSupplies SalesPrepaid Insurance Advertising Expense Accounts Payable-Southern Supplies Utilities Expense Instructions:Aug 1. Mikaela Mundt invested $2,000.00 of her own money in thebusiness. Receipt No. 1.3. Used business cash to purchase supplies costing $216.00. Wrote Check No. 1.4. Wrote Check No. 2 for insurance, $245.00.5. Purchased supplies for $68.00 over the phone from Southern Supplies, promising to send the check next week. Memo No. 1.11. Sent Check No. 3 to Southern Supplies, $68.00.12. Sent a check for the electricity bill, $180.00. Check No. 4.15. Wrote an $800.00 check to Ms. Mundt as a withdrawal of equity for personal use. Used Check No. 5.16. Sold services for $412.00 to J. Lepowsky, who agreed to pay for them within ten days. Sales Invoice No. 1.17. Recorded cash sales of $1,179.00. Calculator tape dated August 17.18. Paid $132.00 for advertising. Wrote Check No. 6.25. Received $412.00 from J. Lepowsky for the services performedlast week. Wrote Receipt No. 2. Instructions:1. Journalize the transactions completed during August of the currentyear. Use page 1 of the journal given in the Working Papers. Rememberto record appropriate source document numbers. 2. Prove and rule the journal.3. Prove cash. The beginning cash balance on August 1 is zero. The balance on the next unused check stub is $1,950.00.
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.
Application Problem Journalizing transactions and proving and ruling a
multicolumn journal LOS, 4, 5, 6, 7, 8, 9
Mundt Services uses the following accounts.
Cash Mikaela Mundt, Capital
Supplies Sales
Prepaid Insurance Advertising Expense
Accounts Payable-Southern Supplies Utilities Expense
Instructions:
Aug
1. Mikaela Mundt invested $2,000.00 of her own money in the
business. Receipt No. 1.
3. Used business cash to purchase supplies costing $216.00. Wrote Check No. 1.
4. Wrote Check No. 2 for insurance, $245.00.
5. Purchased supplies for $68.00 over the phone from Southern
Supplies, promising to send the check next week. Memo No. 1.
11. Sent Check No. 3 to Southern Supplies, $68.00.
12. Sent a check for the electricity bill, $180.00. Check No. 4.
15. Wrote an $800.00 check to Ms. Mundt as a withdrawal of equity for personal use. Used Check No. 5.
16. Sold services for $412.00 to J. Lepowsky, who agreed to pay for them within ten days. Sales Invoice No. 1.
17. Recorded cash sales of $1,179.00. Calculator tape dated August 17.
18. Paid $132.00 for advertising. Wrote Check No. 6.
25. Received $412.00 from J. Lepowsky for the services performed
last week. Wrote Receipt No. 2.
Instructions:
1. Journalize the transactions completed during August of the current
year. Use page 1 of the journal given in the Working Papers. Remember
to record appropriate source document numbers.
2. Prove and rule the journal.
3. Prove cash. The beginning cash balance on August 1 is zero. The balance on the next unused check stub is $1,950.00.
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