December 1 Sanyu Sony transferred $66,000 cash from a personal savings account to a checking account in the name of Sony Electric. December 2 The company paid $1,500 cash for the December rent. December 3 The company purchased $13,400 of electrical equipment by paying $5,200 cash and agreeing to pay the $8,200 balance in 30 days. December 5 The company purchased supplies by paying $900 cash. December 6 The company completed electrical work and immediately collected $1,600 cash for these services. December 8 The company purchased $2,950 of office equipment on credit. December 15 The company completed electrica
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.
Sanyu Sony started a new business and completed these transactions during December.
| December 1 | Sanyu Sony transferred $66,000 cash from a personal savings account to a checking account in the name of Sony Electric. |
|---|---|
| December 2 | The company paid $1,500 cash for the December rent. |
| December 3 | The company purchased $13,400 of electrical equipment by paying $5,200 cash and agreeing to pay the $8,200 balance in 30 days. |
| December 5 | The company purchased supplies by paying $900 cash. |
| December 6 | The company completed electrical work and immediately collected $1,600 cash for these services. |
| December 8 | The company purchased $2,950 of office equipment on credit. |
| December 15 | The company completed electrical work on credit in the amount of $5,900. |
| December 18 | The company purchased $500 of supplies on credit. |
| December 20 | The company paid $2,950 cash for the office equipment purchased on December 8. |
| December 24 | The company billed a client $1,000 for electrical work completed; the balance is due in 30 days. |
| December 28 | The company received $5,900 cash for the work completed on December 15. |
| December 29 | The company paid the assistant’s salary of $1,700 cash for this month. |
| December 30 | The company paid $560 cash for this month’s utility bill. |
| December 31 | Sanyu Sony withdrew $910 cash from the company for personal use. |
1. Enter the amount of each transaction on individual items of the
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