Below are individual unrelated transactions from various companies. Record each transaction in the General Journal directly below it. Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (i.e., January 15 would be 15/Jan). a) March 22: $300 of commissions were earned and collected today by Perry Sales. b) April 6: The Party Place provided $1,000 of consulting services for a customer who will pay within 30 days c) May 5: Seaside Sales used $750 cash and $2,750 credit to purchase new equipment worth $3,500. d) July 12: Biotech Company returned to the supplier $1,750 of equipment discovered to be defective. It was originally purchased on account in an earlier transaction. e) July 22: The bill for the $500 advertising campaign that ran last week was received today and paid f) August 20: One of JenStar's clients rented equipment today for $800 on credit. g) August 21: Swan Furnace Cleaners paid $2,000 for equipment purchased today. h) August 22: $1,700 in dividends were declared and paid to the shareholders of the business. i) August 22: $600 of furniture purchased on credit in an earlier transaction was found to be damaged. XYZ Co. returned it to the supplier. j) September 6: $2,000 of furniture purchased on credit in an earlier transaction was found to be damaged. Sundown Co. returned it to the supplier k) October 14: Jack Tasker, a shareholder of Universal Maintenance Co., received share capital after investing furniture worth $3,000 and a building worth $18,000 into the business I) October 24: The bill for the $1,000 advertising campaign that ran last week was received today and paid. m) November 25: Z-Mart will pay this month's utilities bill of $450 received today, within 30 days. n) December 7: The company you work for, Trex, paid $1,000 towards the bill from an earlier transaction. o) December 25: The company you work for, NorthCo, paid $800 towards the bill from an earlier transaction.
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.
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