Ash Traynor opened a Pokèmon dress shop called PokèShoppe. During the first month of operations, the following transactions were completed. The following account titles are strictly to be used. Utilities Expense Permits and Licenses Unused Supplies Accounts Payable Traynor, Capital Traynor, Drawings Cash P Accounts Receivable Prepaid Rent Salaries Expense Repairs and Maintenance Advances to Employees Sewing Equipment Shop Tools Furniture and Fxtures Service Income 2015 Feb. 2 Traynor invested the following in the dress, shop: Cash, P30,000, a sewing machine appraised at P18,000, shop furniture appraised at P15,000, shop tools appraised at P7,500, an unused supplies worth P2,500. 3 Paid P18,000 as rent for the leased space for three months. 5 Bought for cash: additional shop tools for P2,500 and supplies for P1,800. 6 Bought from Kakuna Japan Surplus a second hand sewing machine for P6,000. Term: 20 days. 8 Traynor increased her investment by putting in additional cash of P15,000. 9 Delivered the order of Misty Lavahlavah, a customer. Billing price, P5,000. o 10 Paid the shop assistant for the one week salary, P3,600. 11 Cash service income for the week P15,500. 12 Collected in full the account of Misty Lavahlavah. 14 Paid for the share of the business an the electric and telephone bills, P2,700. 14 Paid the Town Treasurer P550 for the permits and licenses. 16 Purchased additional shop supplies (buttons, zippers, Velcro, pins, needles, thread, and other sewing accessories), for cash, P1,500. 17 Paid the shop assistant for the one week salary, P3,600. 18 Cash service income for the week, P13,500. 19 Billed Brock Enrll, a customer, for delivered orders, P2,300. 20 Paid P540 for the repairs and maintenance of the sewing machines. 22 Rework was done on the dress of Brock Enroll, Term: free. 22 Collected in full the account of Brock Enroll. 22 Dawn E. Labadabango, a customer, made an advance payment of P18,000 for various dresses to be delivered until the following month. Credited to Service Income.
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.
Required: Prepare a 10 column worksheet for the month ended February 28, 2015
 alt="Ash Traynor opened a Pokèmon dress shop called PokėShoppe. During the first month of operations, the following
transactions were completed. The following account titles are strictly to be used.
Unused Supplies.
Accounts Payable
Utilities Expense
Cash
P Accounts Receivable
Permits and Licenses
Traynor, Capital
Traynor, Drawings
Service Income
Prepaid Rent
Advances to Employees
Sewing Equipment
Salaries Expense
Shop Tools
Repairs and Maintenance
Furniture and Fixtures
2015
Feb. 2 Traynor invested the following in the dress, shop: Cash, P30,000, a sewing machine appraised at
P18,000, shop furnitura appraised at P15,000, shop tools appraised at P7,500, an unused supplies
worth P2,500.
Paid P18,000 as rent for the leased space for three months.
Bought for cash: additional shop tools for P2,500 and supplies for P1,800.
Bought from Kakuna Japan Surplus a second hand sewing machine for P6,000. Term: 20 days.
Traynor increased her investment by putting in additional cash of P15,000.
9 Delivered the order of Misty Lavahlavah, a customer. Billing price, P5,000.l oi
10 Paid the shop assistant for the one week salary, P3,600.
11 Cash service income for the week P15,500.in
12 Collected in full the account of Misty Lavahlavah.
3
6.
8.
14 Paid for the share of the business on the electric and telephone bills, P2,700.
14 Paid the Town Treasurer P550 for the permits and licenses.
16 Purchased additional shop supplies (buttons, zippers, Velcro, pins, needles, thread, and other sewing
accessories), for cash, P1,500.
17 Paid the shop assistant for the one week salary, P3,600.
aiupoggo n
18 Cash service income for the week, P13,500.
bor 19 Billed Brock Enroll, a customer, for delivered orders, P2,300.
20 Paid P540 for the repairs and maintenance of the sewing machines.
22 Rework was done on the dress of Brock Enroll, Term: free. noi sớt xoti cin
oto
22 Collected in full the account of Brock Enroll.
22 Dawn E. Labadabango, a customer, made an advance payment of P18,000 for various dresses to be
delivered until the following month. Credited to Service Income.
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 alt="24 Paid the shop assistant for the one week salary, P3,600.
25 Cash service income for the week, P8,700.
25 Paid Kakuna Japan Surplus in full.
26 Give the shop assistant a short-term loan of P2,000. Term: 30 days.
27 Traynor brought home some shop supplies worth P1,300, for her personal use.
28 Bought additional furniture worth P6,500 from TeamRocket Depot. Term: 30 days.
28 Billings for newly delivered orders: Brock Enroll for P3,000, Misty Lavahlavah for P1,600.
Additional information as of February 28, 2015 are as follows:
a. Out of the balance of the shop tools account, 70% is to be treated as an expense.
b. Depreciations of Sewing Equipment, with an estimated useful life of 5 years and no residual value, and
Furniture and Fixtures, with an estimated useful life of 5 years and no residual value, are computed with the
use of the straight line method. For the purpose of computing for the depreciation, the business decided to
adopt the following policy: fixed assets acquired n the first half of the month (February 1-14) are depreciated
for a full month; fixed assets acquired in the second half of the month are depreciated beginning the following
month.
c. Accrued expenses at the end of the month:
Salaries, P3,600
Utilities, P2,700
d. Prepaid expenses at the end of the period.
Rent, ?
Supplies, P2,100
e. Half of the dresses ordered by Dawn E. Labadabango were already delivered.
Income earned but not yet collected, P3,700.
g. 5% of the unadjusted balance of accounts receivable is doubtful of collection.
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