Feb 2 1. Sue Feria opened a travel agency business on April 5, 2019. A month after she was able to comply with the legal requirements and documents, the business started operation. The following balances were taken on April 30. 2019: Inve Date Cash 61,000 Due from Supplies Furniture Equipment Customers 14,500 50,500 25,000 Account due to Ros 15,000 24-month Feria, Capital Note Due to BDO 50,000 30 31 Supplies used up, P3,500. Explanation for chang Taxes and +100,000 Investme 8,000 Licen 6.000 The following transactions took place during the month of May: 2 Received P45,000 from the office of Pagcor for the processing of their documen with the Department of Foreign Affairs. Use the revenue title - Processing Fees 2 Received from various airline companies commission for ticket purchased for client P28,000. Use the revenue title - Commission Income. Registrati n Expe 5 Paid P10,000 to BDO. 8 Paid for supplies bought, P7,250. 10 Received P8,000 commission from airline companies for tickets purchased for clients. 11 Bought a photocopying machine for P15,000 by paying 50% in cash, the balance on account. 14 Collected service fees of P5,000 from clients for processing of visa and passport. 15 Paid cash for salaries, P15,000. 18 Billed Moyses Company P12,000 for processing of visa and passport of their officers. 20 Mr. and Mrs. Smith paid P1,000 for the processing of their papers. 24 Paid P5,000 of the account due to Ros. classified report form of statement of financial position. b) Using the cash column, prepare a working paper of cash flows, Fay Fed 25 Moyses Company paid 50% of their account. 27 Billed PAL P3,500 for commissions accruing on tickets purchased. 28 Bills were received from the following: PLDT, P3,500 and Meralco, P5,500. 29 Receipts from various clients for services rendered: from tourist and immigrants P4,500 and airline companies, P7,500. Paid cash P7,500 for rent and P15,000 for salaries. Analyze the above transactions, start with the balances given on April 30. a) Present an income statement, statement of changes in owner's equity, a proper
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.
Sue Feria opened a travel agency business on April 5, 2019. A month after she was able to comply with the legal requirements and documents, the business started operation. The following balances were taken on April 30, 2019:
Analyze the above transactions, start with the balances given on April 30.
a) Present an income statement, statement of changes in owner's equity, a properly classified report form of
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