E Kim tells you how much the expenditures are and you give her the cash out of petty cash. Kim has gven you receipts to substantiate her claims. The owner of the business is visiting and asks you how ins are going. What should you do, if anything? Explain. Problem 7-3A Petty cash fund reimbursement and analysis of errors LO4 Canital Irrigation has only a general journal in its accounting system and uses it to record all transactions, Houever, the company recently set up a petty cash fund to facilitate payments of small items. The followving pety cash transactions were noted by the petty cashier as occurring during April 2020: inswer Received a company cheque for $300 to establish the petty cash fund. 15 Received a company cheque to replenish the fund for the following expenditures made since April 1 and to increase the fund to $400. Apr. a Paid $82 for janitorial service. b. Purchased office supplies for $78.15. Purchased postage stamps for $25.00. d. Paid $92.50 to The County Crier for an advertisement in the newspaper. C. e Discovered that $24.35 remained in the petty cash box. 30 The petty cashier noted that $244.95 remained in the fund and decided that the April 15 increase in the fund was too large. Therefore, a company cheque was issued to replenish the fund for the following expenditures made since April 15 and to reduce the fund to $350. Purchased office supplies for $94.65. g. Reimbursed office manager for business auto, $45.60. h. Paid $14.80 courier charges to deliver merchandise to a customer.
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.
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