Enter each of the following invoices into a single-column sales journal. Total the entries and place appropriate general ledger account numbers below to show where the total would be posted. There is no need to record any details to individual customer accounts. The company uses 120 as their general ledger account number for Accounts Receivable, and the Sales account number is 400. Each sale carries terms of net 30 days. 2017 May 4 Invoice 801 Sold $200 to Francine Company on account. 7 Invoice 802 Sold $300 to Joshua Enterprises on account. 13 Invoice 803 Sold $100 to Charlize Company on account. 22 Invoice 804 Sold $350 to Francine Company on account. 25 Invoice 805 Sold $400 to Kirkhouse Consulting on account. 30 Invoice 806 Sold $250 to Charlize Company on account
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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