Create a journal entries for this transactions 1. December 2, 2019 - He bought supplies on account amounting to P7,200 2. December 8, 2019 - He paid accounts payable for supplies purchased worth P7,200
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.
Create a
1. December 2, 2019 - He bought supplies on account amounting to P7,200
2. December 8, 2019 - He paid accounts payable for supplies purchased worth P7,200
![g Company
ate sheet of paper.
3. Prepare the trial balance.
Matapang established Happy Repair Business. The following are the
es.
Post each transaction to its ledger account.
He bought supplies on account amounting to P7,200.
He purchased office equipment amounting to P75,000, paid
He invested P150,000 in the firm.
4. Use the provided account numbers.
for the month of December 2019.
He paid P8,000 for monthly rent.
the trial balance.
Prepare
the provided account numbers
2.
3.
He invested P150,000 in the firm
He bought supplies on account amounting to P7,200.
P37.000 and the balance on account.
He paid accounts payable for supplies purchased worth P7,200
He paid P6,000 for the salary of an employee.
He received P20,000 for services rendered.
He billed clients P48,000 for services on account.
Matapang withdrew P12,000 for his personal use.
Cash
302 Matapang, Drawings
401 Service Revenue
Accounts Receivable
501 Salaries Expe nse
Supplies
502 Rent Expense
Office Equipment
503 Utilities Expense
ccounts Payable](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1ea1d650-a2e8-472b-8ac4-6554986ca804%2Fc9dfabb9-498a-4030-8ed9-25333883d096%2Fdbrhlg_processed.jpeg&w=3840&q=75)
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