Connie Young, an architect, opened an office on October 1, 20Y4. During the month, she completed the following transactions connected with her professional practice: Transferred cash from a personal bank account to an account to be used for the business, $43,200. Paid October rent for office and workroom, $4,300. Purchased used automobile for $28,000, paying $6,500 cash and giving a note payable for the remainder. Purchased office and computer equipment on account, $8,600. Paid cash for supplies, $2,070. Paid cash for annual insurance policies, $2,900. Received cash from client for plans delivered, $10,800. Paid cash for miscellaneous expenses, $1,170. Paid cash to creditors on account, $2,510. Paid $350 on note payable. Received invoice for blueprint service, due in November, $1,400. Recorded fees earned on plans delivered, payment to be received in November, $7,500. Paid salary of assistants, $2,300. Paid gas, oil, and repairs on automobile for October, $560. Required: 1. Record the above transactions (in chronological order) directly into the T accounts. To the left of the amount entered in the accounts, select the appropriate letter to identify the transaction. 2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance. Question Content Area Cash fill in the blank d0ec1801300c00c_2 fill in the blank d0ec1801300c00c_4 fill in the blank d0ec1801300c00c_6 fill in the blank d0ec1801300c00c_8 fill in the blank d0ec1801300c00c_10 fill in the blank d0ec1801300c00c_12 fill in the blank d0ec1801300c00c_14 fill in the blank d0ec1801300c00c_16 fill in the blank d0ec1801300c00c_18 fill in the blank d0ec1801300c00c_20 fill in the blank d0ec1801300c00c_22 Bal. fill in the blank d0ec1801300c00c_23 Accounts Receivable fill in the blank d0ec1801300c00c_25 Supplies fill in the blank d0ec1801300c00c_27 Prepaid Insurance fill in the blank d0ec1801300c00c_29 Automobiles fill in the blank d0ec1801300c00c_31 Equipment fill in the blank d0ec1801300c00c_33 Accounts Payable fill in the blank d0ec1801300c00c_35 fill in the blank d0ec1801300c00c_37 fill in the blank d0ec1801300c00c_39 Bal. fill in the blank d0ec1801300c00c_40 Notes Payable fill in the blank d0ec1801300c00c_42 fill in the blank d0ec1801300c00c_44 Bal. fill in the blank d0ec1801300c00c_45 Connie Young, Capital fill in the blank d0ec1801300c00c_47 Professional Fees fill in the blank d0ec1801300c00c_49 fill in the blank d0ec1801300c00c_51 Bal. fill in the blank d0ec1801300c00c_52 Salary Expense fill in the blank d0ec1801300c00c_54 Blueprint Expense fill in the blank d0ec1801300c00c_56 Rent Expense fill in the blank d0ec1801300c00c_58 Automobile Expense fill in the blank d0ec1801300c00c_60 Miscellaneous Expense fill in the blank d0ec1801300c00c_62 Feedback Area Feedback 1. and 2. First, identify what account is used and then what type of account is used. Every account is either an asset, liability, capital, withdrawal, revenue, or expense account. Every transaction involves at least two accounts. Then determine whether the account increases or decreases. Each increase or decrease is recorded as a debit or credit in the T-accounts, following the rules of debit and credit. Net debits against credits to determine the balance and double-check to see if it is a normal balance for that account classification. Question Content Area 3. Prepare an unadjusted trial balance for Connie Young, Architect, as of October 31, 20Y4. For those boxes in which no entry is required, leave the box blank. Connie Young, ArchitectUnadjusted Trial BalanceOctober 31, 20Y4 Debit Balances Credit Balances Cash Cash Accounts Receivable Accounts Receivable Supplies Supplies Prepaid Insurance Prepaid Insurance Automobiles Automobiles Equipment Equipment Accounts Payable Accounts Payable Notes Payable Notes Payable Connie Young, Capital Connie Young, Capital Professional Fees Professional Fees Salary Expense Salary Expense Blueprint Expense Blueprint Expense Rent Expense Rent Expense Automobile Expense Automobile Expense Miscellaneous Expense Miscellaneous Expense fill in the blank 36951604a01ffcf_46 fill in the blank 36951604a01ffcf_47 Feedback Area Feedback 3. The trial balance lists the ending balance of each account in a corresponding Debit or Credit column. The trial balance column totals should be equal. Question Content Area 4. Determine the net income or net loss for October. $fill in the blank db8782027008f8b_2
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.
Connie Young, an architect, opened an office on October 1, 20Y4. During the month, she completed the following transactions connected with her professional practice:
- Transferred cash from a personal bank account to an account to be used for the business, $43,200.
- Paid October rent for office and workroom, $4,300.
- Purchased used automobile for $28,000, paying $6,500 cash and giving a note payable for the remainder.
- Purchased office and computer equipment on account, $8,600.
- Paid cash for supplies, $2,070.
- Paid cash for annual insurance policies, $2,900.
- Received cash from client for plans delivered, $10,800.
- Paid cash for miscellaneous expenses, $1,170.
- Paid cash to creditors on account, $2,510.
- Paid $350 on note payable.
- Received invoice for blueprint service, due in November, $1,400.
- Recorded fees earned on plans delivered, payment to be received in November, $7,500.
- Paid salary of assistants, $2,300.
- Paid gas, oil, and repairs on automobile for October, $560.
Required:
1. Record the above transactions (in chronological order) directly into the T accounts. To the left of the amount entered in the accounts, select the appropriate letter to identify the transaction.
2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.
Question Content Area
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fill in the blank d0ec1801300c00c_2 |
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fill in the blank d0ec1801300c00c_16 | ||
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fill in the blank d0ec1801300c00c_20 | ||
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fill in the blank d0ec1801300c00c_22 | ||
| Bal. | fill in the blank d0ec1801300c00c_23 |
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fill in the blank d0ec1801300c00c_25 |
| Supplies | |||
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fill in the blank d0ec1801300c00c_27 |
| Prepaid Insurance | |||
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fill in the blank d0ec1801300c00c_29 |
| Automobiles | |||
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fill in the blank d0ec1801300c00c_31 |
| Equipment | |||
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fill in the blank d0ec1801300c00c_33 |
| Accounts Payable | |||
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fill in the blank d0ec1801300c00c_35 |
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| Bal. | fill in the blank d0ec1801300c00c_40 |
| Notes Payable | |||
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fill in the blank d0ec1801300c00c_42 |
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fill in the blank d0ec1801300c00c_44 |
| Bal. | fill in the blank d0ec1801300c00c_45 |
| Connie Young, Capital | |||
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fill in the blank d0ec1801300c00c_47 |
| Professional Fees | |||
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fill in the blank d0ec1801300c00c_49 | ||
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fill in the blank d0ec1801300c00c_51 | ||
| Bal. | fill in the blank d0ec1801300c00c_52 |
| Salary Expense | |||
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fill in the blank d0ec1801300c00c_54 |
| Blueprint Expense | |||
|---|---|---|---|
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fill in the blank d0ec1801300c00c_56 |
| Rent Expense | |||
|---|---|---|---|
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fill in the blank d0ec1801300c00c_58 |
| Automobile Expense | |||
|---|---|---|---|
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fill in the blank d0ec1801300c00c_60 |
| Miscellaneous Expense | |||
|---|---|---|---|
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fill in the blank d0ec1801300c00c_62 |
Feedback Area
1. and 2. First, identify what account is used and then what type of account is used. Every account is either an asset, liability, capital, withdrawal, revenue, or expense account. Every transaction involves at least two accounts. Then determine whether the account increases or decreases. Each increase or decrease is recorded as a debit or credit in the T-accounts, following the rules of debit and credit. Net debits against credits to determine the balance and double-check to see if it is a normal balance for that account classification.
Question Content Area
3. Prepare an unadjusted
| Debit Balances |
Credit Balances |
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Cash | Cash |
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Accounts Receivable | Accounts Receivable |
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Supplies | Supplies |
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Prepaid Insurance | Prepaid Insurance |
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Automobiles | Automobiles |
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Equipment | Equipment |
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Accounts Payable | Accounts Payable |
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Notes Payable | Notes Payable |
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Connie Young, Capital | Connie Young, Capital |
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Professional Fees | Professional Fees |
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Salary Expense | Salary Expense |
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Blueprint Expense | Blueprint Expense |
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Rent Expense | Rent Expense |
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Automobile Expense | Automobile Expense |
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Miscellaneous Expense | Miscellaneous Expense |
| fill in the blank 36951604a01ffcf_46 | fill in the blank 36951604a01ffcf_47 |
Feedback Area
3. The trial balance lists the ending balance of each account in a corresponding Debit or Credit column. The trial balance column totals should be equal.
Question Content Area
4. Determine the net income or net loss for October.
$fill in the blank db8782027008f8b_2
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