Current Attempt in Progress Charlie Company uses a perpetual inventory system. During May, the following transactions and events occurred. May 13 May 16 May 23 Sold 8 motors at a cost of $45 each to Scruffy Brothers Supply Company, terms 4/10, n/30. The motors cost Charlie $2 each. One defective motor was returned to Charlie. Received payment in full from Scruffy Brothers. Journalize the May transactions for Charlie Company (seller) assuming that Charlie uses a perpetual inventory system. (Credit acc titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the O decimal places. e.g. 5.275.)
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.
![**Accounting Journal Entry Worksheet**
This worksheet is designed to help you organize and record various accounting transactions. Each section provides space for the account titles and explanations, along with designated columns for debit and credit amounts.
**Columns:**
- **Account Titles and Explanation:** Write the titles of the accounts affected and a brief explanation of the transaction.
- **Debit:** Record the amount to be debited.
- **Credit:** Record the amount to be credited.
### Example Entries
1. **To record a credit sale:**
- Account Titles and Explanation: [Blank]
- Debit: [Blank]
- Credit: [Blank]
2. **To record the cost of goods sold:**
- Account Titles and Explanation: [Blank]
- Debit: [Blank]
- Credit: [Blank]
3. **To record goods returned:**
- Account Titles and Explanation: [Blank]
- Debit: [Blank]
- Credit: [Blank]
4. **To record the cost of goods returned:**
- Account Titles and Explanation: [Blank]
- Debit: [Blank]
- Credit: [Blank]
### Image Description
The image presents a screenshot of an accounting journal entry worksheet. The worksheet includes a table with the following headers:
- Account Titles and Explanation
- Debit
- Credit
There are multiple rows under each header for users to fill in with the appropriate information for different transactions. Below the table, there are a few files shown on the taskbar including:
- `norcal_archives_20...zip`
- `QCA 5.docx`
- `response essay.docx`
### Purpose of the Worksheet
This worksheet serves as a structured tool for students or professionals to practice recording journal entries accurately. The systematic approach helps in understanding the double-entry accounting system where each transaction affects at least two accounts, ensuring that the accounting equation (Assets = Liabilities + Equity) remains balanced.
Please fill in each section carefully, ensuring the correct accounts are debited and credited according to the nature of each transaction.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F28da1f9f-4918-4f29-9417-2a23598ceede%2F06f0132a-e162-4798-bc02-beb204b6b21f%2F42luj5v_processed.jpeg&w=3840&q=75)
![### Inventory Management and Transactions Journal
**Current Attempt in Progress**
Charlie Company uses a perpetual inventory system. During May, the following transactions and events occurred:
1. **May 13:** Sold 8 motors at a cost of $45 each to Scruffy Brothers Supply Company, terms 4/10, n/30. The motors cost Charlie $26 each.
2. **May 16:** One defective motor was returned to Charlie.
3. **May 23:** Received payment in full from Scruffy Brothers.
**Task:**
Journalize the May transactions for Charlie Company (seller) assuming that Charlie uses a perpetual inventory system. (Note: Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g., 5,275.)
**Journal Entries:**
| Date | Account Titles and Explanation | Debit | Credit |
|-----------|---------------------------------------------|--------|--------|
| May 13 | [Record Sales] | | |
| | Accounts Receivable - Scruffy Brothers | | |
| | Sales Revenue | | |
| | [Record Cost of Goods Sold] | | |
| | Cost of Goods Sold | | |
| | Inventory | | |
| --------------------------------------- |--------|--------|
| May 16 | [Record Sales Return] | | |
| | Sales Returns and Allowances | | |
| | Accounts Receivable - Scruffy Brothers | | |
| | [Adjust Inventory] | | |
| | Inventory | | |
| | Cost of Goods Sold | | |
| --------------------------------------- |--------|--------|
| May 23 | [Record Cash Collection] | | |
| | Cash | | |
| | Accounts Receivable - Scruffy Brothers | | |
| | Sales Discounts | | |
**Note:**
The exact amount values for debit and credit entries will depend on the detailed computations using the given prices and quantities.
**Explanation of Transaction Terms:**
- **4/10, n/30:** This indicates that the buyer can take a 4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F28da1f9f-4918-4f29-9417-2a23598ceede%2F06f0132a-e162-4798-bc02-beb204b6b21f%2Fkqasyzx_processed.jpeg&w=3840&q=75)
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