Assume John Sullivan completed the following additional transactions during February. (e) Received cash from a client for professional services, $1,500. (f) Paid office rent for February, $600. (g) Paid February phone bill, $64. (h) Withdrew cash for personal use, $1,000. (i) Performed services for clients on account, $750. (j) Paid wages to part-time employee, $1,200. (k) Received cash for services performed on account in transaction (i), $400. (Enter the change in Cash on the first line and the change in other account on the second line.) Show the effect of each transaction on the basic elements of the expanded accounting equation: Assets = Liabilities + Owner's Equity (Capital – Drawing + Revenues – Expenses). Use the minus sign to indicate a decrease or reduction in the account. After transaction (k), report the totals for each element. If an amount box does not require an entry, leave it blank. Owner's Equity Assets = Liabilities + Capital - Drawing + Revenues - Expenses Description Bal. 32,200 5,200 27,000 (e) fill in the blank 1 fill in the blank 2 fill in the blank 3 fill in the blank 4 fill in the blank 5 fill in the blank 6 (f) fill in the blank 8 fill in the blank 9 fill in the blank 10 fill in the blank 11 fill in the blank 12 fill in the blank 13 (g) fill in the blank 15 fill in the blank 16 fill in the blank 17 fill in the blank 18 fill in the blank 19 fill in the blank 20 (h) fill in the blank 22 fill in the blank 23 fill in the blank 24 fill in the blank 25 fill in the blank 26 fill in the blank 27 (i) fill in the blank 28 fill in the blank 29 fill in the blank 30 fill in the blank 31 fill in the blank 32 fill in the blank 33 (j) fill in the blank 35 fill in the blank 36 fill in the blank 37 fill in the blank 38 fill in the blank 39 fill in the blank 40 (k) fill in the blank 42 fill in the blank 43 fill in the blank 44 fill in the blank 45 fill in the blank 46 fill in the blank 47 fill in the blank 48 fill in the blank 49 fill in the blank 50 fill in the blank 51 fill in the blank 52 fill in the blank 53 Bal. fill in the blank 54 = fill in the blank 55 + fill in the blank 56 - fill in the blank 57 + fill in the blank 58 - fill in the blank 59 Demonstrate that the accounting equation has remained in balance. Total Assets $fill in the blank 60 Total Liabilities $fill in the blank 61 Capital fill in the blank 62 Drawing fill in the blank 63 Revenues fill in the blank 64 Expenses fill in the blank 65 Total Liabilities and Owner's Equity $fill in the blank 66
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.
Assume John Sullivan completed the following additional transactions during February.
(e) Received cash from a client for professional services, $1,500.
(f) Paid office rent for February, $600.
(g) Paid February phone bill, $64.
(h) Withdrew cash for personal use, $1,000.
(i) Performed services for clients on account, $750.
(j) Paid wages to part-time employee, $1,200.
(k) Received cash for services performed on account in transaction (i), $400. (Enter the change in Cash on the first line and the change in other account on the second line.)
Show the effect of each transaction on the basic elements of the
| Owner's Equity | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Assets | = | Liabilities | + | Capital | - | Drawing | + | Revenues | - | Expenses | Description | ||
| Bal. | 32,200 | 5,200 | 27,000 | ||||||||||
| (e) | fill in the blank 1 | fill in the blank 2 | fill in the blank 3 | fill in the blank 4 | fill in the blank 5 | fill in the blank 6 | |||||||
| (f) | fill in the blank 8 | fill in the blank 9 | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 | fill in the blank 13 | |||||||
| (g) | fill in the blank 15 | fill in the blank 16 | fill in the blank 17 | fill in the blank 18 | fill in the blank 19 | fill in the blank 20 | |||||||
| (h) | fill in the blank 22 | fill in the blank 23 | fill in the blank 24 | fill in the blank 25 | fill in the blank 26 | fill in the blank 27 | |||||||
| (i) | fill in the blank 28 | fill in the blank 29 | fill in the blank 30 | fill in the blank 31 | fill in the blank 32 | fill in the blank 33 | |||||||
| (j) | fill in the blank 35 | fill in the blank 36 | fill in the blank 37 | fill in the blank 38 | fill in the blank 39 | fill in the blank 40 | |||||||
| (k) | fill in the blank 42 | fill in the blank 43 | fill in the blank 44 | fill in the blank 45 | fill in the blank 46 | fill in the blank 47 | |||||||
| fill in the blank 48 | fill in the blank 49 | fill in the blank 50 | fill in the blank 51 | fill in the blank 52 | fill in the blank 53 | ||||||||
| Bal. | fill in the blank 54 | = | fill in the blank 55 | + | fill in the blank 56 | - | fill in the blank 57 | + | fill in the blank 58 | - | fill in the blank 59 |
Demonstrate that the accounting equation has remained in balance.
| Total Assets | $fill in the blank 60 |
| Total Liabilities | $fill in the blank 61 |
| Capital | fill in the blank 62 |
| Drawing | fill in the blank 63 |
| Revenues | fill in the blank 64 |
| Expenses | fill in the blank 65 |
| Total Liabilities and Owner's Equity | $fill in the blank 66 |
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Effects of Transactions (Revenue, Expense, Withdrawals)
Assume Jon Wallace completed the following additional transactions during March.
e. Performed services and received cash, $3,000.
f. Paid rent for March, $1,000.
g. Paid March phone bill, $68.
h. Jon Wallace withdrew cash for personal use, $800.
i. Performed services for clients on account, $900.
j. Paid wages to part-time employee, $500.
k. Received cash for services performed on account in transaction (i), $500. (Enter the change in Cash on the first line and the change in other account on the second line.)
Show the effect of each transaction on the basic elements of the
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