Create a Trial Balance.
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
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$5,000 as down payment and the balance due when installed.
Received bill for advertising form Buy and Sell Newspaper, $3,230.
Bought print paper and stationery on account, P2,290.
Received and paid electric bill, P1,240.
Paid bill for advertising recorded previously in transaction.
Received cash for service rendered, P10,900.
Paid salaries to employees, P8,400.
Mulles withdrew cash for personal use, P4,500.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8611d677-e682-4f14-ad92-aff18f53d8e7%2F06c4764c-6242-4338-9284-dbd7ab9c9cdd%2Fgxrr57j_processed.png&w=3840&q=75)
![Using your columnar paper, prepare a General Journal and Ledger and Trial Balance
given the transaction below.
Nancy Mulles established the Mulles data encoders in September 2020, The following
transaction occurred during the month:
Acc. No.
Assets
Acc. No.
Revenue
110
Cash
410
Service revenue
120
Account Receivable
Acc. No.
Expenses
130
Supplies
510
alaries Expense
140
Office Equipment
520
Advertising Expense
150
Computer Software
530
Rent Expense
160
Signage
540
Utilities Expense
Acc. No.
Liability
550
Miscellaneous Expense
210
Account Payable
Acc. No.
Owner's equity
310
Mulles, Capital
320
Mulles, Withdrawals
September 1
Mulles investment P157,000 cash to establish the business.
Bought office desk and filling cabinet for cash, > 15,150.
3
5
Mulles investment in the business her personal computer with a fair
market value of $57,500.
8
Bought computer software for use in the business from San Jose
computer center for $39,000, paying P15,000 down; the balance is due
in thirty days.
10
Paid rent for the month, P5,300.
15
Received cash for service rendered, P5,160.
17
Ordered a panaflex sign for $9,000 from Royal Bright Enterprises, with](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8611d677-e682-4f14-ad92-aff18f53d8e7%2F06c4764c-6242-4338-9284-dbd7ab9c9cdd%2Fbflv13x_processed.png&w=3840&q=75)
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