Entries into T Accounts and Trial Balance Connie Young, an architect, opened an office on October 1, 2019. During the month, she completed the following transactions connected with her professional practice: Transferred cash from a personal bank account to an account to be used for the business, $33,200. Paid October rent for office and workroom, $3,300. Purchased used automobile for $22,000, paying $5,000 cash and giving a note payable for the remainder. Purchased office and computer equipment on account, $6,600. Paid cash for supplies, $1,590. Paid cash for annual insurance policies, $2,200. Received cash from client for plans delivered, $8,300. Paid cash for miscellaneous expenses, $900. Paid cash to creditors on account, $1,930. Paid $270 on note payable. Received invoice for blueprint service, due in November, $1,100. Recorded fees earned on plans delivered, payment to be received in November, $5,700. Paid salary of assistants, $1,800. Paid gas, oil, and repairs on automobile for October, $430. Required: 1. Record the above transactions (in chronological order) directly into the T accounts. To the left of the amount entered in the accounts, select the appropriate letter to identify the transaction. 2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance. Cash a. fill in the blank b. fill in the blank g. fill in the blank c. fill in the blank e. fill in the blank f. fill in the blank h. fill in the blank i. fill in the blank j. fill in the blank m. fill in the blank n. fill in the blank Bal. fill in the blank Accounts Receivable l. fill in the blank Supplies e. fill in the blank Prepaid Insurance f. fill in the blank Automobiles c. fill in the blank Equipment d. fill in the blank Accounts Payable i. fill in the blank d. fill in the blank k. fill in the blank Bal. fill in the blank Notes Payable j. fill in the blank c. fill in the blank Bal. fill in the blank Connie Young, Capital a. fill in the blank Professional Fees g. fill in the blank fill in the blank Bal. fill in the blank Salary Expense m. fill in the blank Blueprint Expense k. fill in the blank Rent Expense b. fill in the blank Automobile Expense n. fill in the blank Miscellaneous Expense h. fill in the blank Feedback 1. and 2. First, identify what account is used and then what type of account is used. Every account is either an asset, liability, capital, withdrawal, revenue, or expense account. Every transaction involves at least two accounts. Then determine whether the account increases or decreases. Each increase or decrease is recorded as a debit or credit in the T-accounts, following the rules of debit and credit. Net debits against credits to determine the balance and double-check to see if it is a normal balance for that account classification. 3. Prepare an unadjusted trial balance for Connie Young, Architect, as of October 31, 2019. For those boxes in which no entry is required, leave the box blank. Connie Young, Architect Unadjusted Trial Balance October 31, 2019 Debit Balances Credit Balances Cash Accounts Receivable Supplies Prepaid Insurance Automobiles Equipment Accounts Payable Notes Payable Connie Young, Capital Professional Fees Salary Expense Blueprint Expense Rent Expense Automobile Expense Miscellaneous Expense Feedback 4. Determine the net income or net loss for October. Net income
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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Entries into T Accounts and
Trial Balance Connie Young, an architect, opened an office on October 1, 2019. During the month, she completed the following transactions connected with her professional practice:
- Transferred cash from a personal bank account to an account to be used for the business, $33,200.
- Paid October rent for office and workroom, $3,300.
- Purchased used automobile for $22,000, paying $5,000 cash and giving a note payable for the remainder.
- Purchased office and computer equipment on account, $6,600.
- Paid cash for supplies, $1,590.
- Paid cash for annual insurance policies, $2,200.
- Received cash from client for plans delivered, $8,300.
- Paid cash for miscellaneous expenses, $900.
- Paid cash to creditors on account, $1,930.
- Paid $270 on note payable.
- Received invoice for blueprint service, due in November, $1,100.
- Recorded fees earned on plans delivered, payment to be received in November, $5,700.
- Paid salary of assistants, $1,800.
- Paid gas, oil, and repairs on automobile for October, $430.
Required:
1. Record the above transactions (in chronological order) directly into the T accounts. To the left of the amount entered in the accounts, select the appropriate letter to identify the transaction.
2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.
Cash a. fill in the blank b. fill in the blank g. fill in the blank c. fill in the blank e. fill in the blank f. fill in the blank h. fill in the blank i. fill in the blank j. fill in the blank m. fill in the blank n. fill in the blank Bal. fill in the blank
Accounts Receivable l. fill in the blank
Supplies e. fill in the blank
Prepaid Insurance f. fill in the blank
Automobiles c. fill in the blank
Equipment d. fill in the blank
Accounts Payable i. fill in the blank d. fill in the blank k. fill in the blank Bal. fill in the blank
Notes Payable j. fill in the blank c. fill in the blank Bal. fill in the blank
Connie Young, Capital a. fill in the blank
Professional Fees g. fill in the blank fill in the blank Bal. fill in the blank
Salary Expense m. fill in the blank
Blueprint Expense k. fill in the blank
Rent Expense b. fill in the blank
Automobile Expense n. fill in the blank
Miscellaneous Expense h. fill in the blank Feedback1. and 2. First, identify what account is used and then what type of account is used. Every account is either an asset, liability, capital, withdrawal, revenue, or expense account. Every transaction involves at least two accounts. Then determine whether the account increases or decreases. Each increase or decrease is recorded as a debit or credit in the T-accounts, following the rules of debit and credit. Net debits against credits to determine the balance and double-check to see if it is a normal balance for that account classification.
3. Prepare an unadjusted trial balance for Connie Young, Architect, as of October 31, 2019. For those boxes in which no entry is required, leave the box blank.
Connie Young, Architect Unadjusted Trial Balance October 31, 2019 Debit
BalancesCredit
BalancesCash Accounts Receivable Supplies Prepaid Insurance Automobiles Equipment Accounts Payable Notes Payable Connie Young, Capital Professional Fees Salary Expense Blueprint Expense Rent Expense Automobile Expense Miscellaneous Expense Feedback4. Determine the net income or net loss for October.
Net income
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