CAN SOMEONE SHOW ME HOW TO DO A " CASH JOURNAL"? Selected accounts from the chart of accounts of Crane Company are shown below. 101 Cash 401 Sales Revenue 112 Accounts Receivable 412 Sales Returns and Allowances 120 Inventory 414 Sales Discounts 126 Supplies 505 Cost of Goods Sold 157 Equipment 726 Salaries and Wages Expense 201 Accounts Payable The cost of all merchandise sold was 60% of the sales price. During January, Crane completed the following transactions. Jan. 3 Purchased merchandise on account from Gallagher Co. $10,500. 4 Purchased supplies for cash $80. 4 Sold merchandise on account to Wheeler $5,670, invoice no. 371, terms 1/10, n/30. 5 Returned $300 worth of damaged goods purchased on account from Gallagher Co. on January 3. 6 Made cash sales for the week totaling $3,800. 8 Purchased merchandise on account from Phegley Co. $5,000. 9 Sold merchandise on account to Linton Corp. $5,300, invoice no. 372, terms 1/10, n/30. 11 Purchased merchandise on account from Cora Co. $3,650. 13 Paid in full Gallagher Co. on account less a 2% discount. 13 Made cash sales for the week totaling $5,970. 15 Received payment from Linton Corp. for invoice no. 372. 15 Paid semi-monthly salaries of $13,000 to employees. 17 Received payment from Wheeler for invoice no. 371. 17 Sold merchandise on account to Delaney Co. $2,880, invoice no. 373, terms 1/10, n/30. 19 Purchased equipment on account from Dozier Corp. $5,770. 20 Cash sales for the week totaled $3,740. 20 Paid in full Phegley Co. on account less a 2% discount. 23 Purchased merchandise on account from Gallagher Co. $7,030. 24 Purchased merchandise on account from Atchison Corp. $5,440. 27 Made cash sales for the week totaling $4,620. 30 Received payment from Delaney Co. for invoice no. 373. 31 Paid semi-monthly salaries of $13,190 to employees. 31 Sold merchandise on account to Wheeler $9,310, invoice no. 374, terms 1/10, n/30. Mercer Company uses the following journals. 1. Sales journal. 2. Single-column purchases journal. 3. Cash receipts journal. 4. Cash payments journal. 5. General journal.
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.
CAN SOMEONE SHOW ME HOW TO DO A " CASH JOURNAL"?
Selected accounts from the chart of accounts of Crane Company are shown below.
|
101
|
Cash |
401
|
Sales Revenue | |||
|---|---|---|---|---|---|---|
|
112
|
412
|
Sales Returns and Allowances | ||||
|
120
|
Inventory |
414
|
Sales Discounts | |||
|
126
|
Supplies |
505
|
Cost of Goods Sold | |||
|
157
|
Equipment |
726
|
Salaries and Wages Expense | |||
|
201
|
Accounts Payable |
The cost of all merchandise sold was 60% of the sales price. During January, Crane completed the following transactions.
|
Jan. 3
|
Purchased merchandise on account from Gallagher Co. $10,500. | |
|---|---|---|
|
4
|
Purchased supplies for cash $80. | |
|
4
|
Sold merchandise on account to Wheeler $5,670, invoice no. 371, terms 1/10, n/30. | |
|
5
|
Returned $300 worth of damaged goods purchased on account from Gallagher Co. on January 3. | |
|
6
|
Made cash sales for the week totaling $3,800. | |
|
8
|
Purchased merchandise on account from Phegley Co. $5,000. | |
|
9
|
Sold merchandise on account to Linton Corp. $5,300, invoice no. 372, terms 1/10, n/30. | |
|
11
|
Purchased merchandise on account from Cora Co. $3,650. | |
|
13
|
Paid in full Gallagher Co. on account less a 2% discount. | |
|
13
|
Made cash sales for the week totaling $5,970. | |
|
15
|
Received payment from Linton Corp. for invoice no. 372. | |
|
15
|
Paid semi-monthly salaries of $13,000 to employees. | |
|
17
|
Received payment from Wheeler for invoice no. 371. | |
|
17
|
Sold merchandise on account to Delaney Co. $2,880, invoice no. 373, terms 1/10, n/30. | |
|
19
|
Purchased equipment on account from Dozier Corp. $5,770. | |
|
20
|
Cash sales for the week totaled $3,740. | |
|
20
|
Paid in full Phegley Co. on account less a 2% discount. | |
|
23
|
Purchased merchandise on account from Gallagher Co. $7,030. | |
|
24
|
Purchased merchandise on account from Atchison Corp. $5,440. | |
|
27
|
Made cash sales for the week totaling $4,620. | |
|
30
|
Received payment from Delaney Co. for invoice no. 373. | |
|
31
|
Paid semi-monthly salaries of $13,190 to employees. | |
|
31
|
Sold merchandise on account to Wheeler $9,310, invoice no. 374, terms 1/10, n/30. |
Mercer Company uses the following journals.
| 1. | Sales journal. | |
| 2. | Single-column purchases journal. | |
| 3. | Cash receipts journal. | |
| 4. | Cash payments journal. | |
| 5. | General journal. |
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