Francis Dhami, Public Accountant, completed these activities during September 2023, the first month of operations: Sept. 1 Began a public accounting practice by investing $48,000 in cash and office equipment having a $11,800 fair value. 1 Prepaid cash for three months’ rent in advance on suitable office space, $8,700. 2 Purchased on credit used office equipment, $5,800, and office supplies, $1,180. 4 Completed accounting work for a client and immediately received payment of $6,000 cash. 8 Completed accounting work on credit for Frontier Bank, $3,800. 10 Paid for the items purchased on credit on September 2. 14 Paid the annual $2,800 premium on an insurance policy. 15 Registered to attend an all-day seminar, costing $800 on October 20 regarding ethical accounting practices and will pay when attending. 18 Received $1,400 from Frontier Bank for the work completed on September 8. 24 Completed accounting work on credit for Travis Realty, $2,750. 28 Withdrew $3,400 cash from the practice to pay personal expenses. 29 Purchased additional office supplies on credit, $630. 30 Paid the September utility bills, $840. • Required Prepare journal entries to record the transactions. Prepare the unadjusted trial balance for the month of September.
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.
Francis Dhami, Public Accountant, completed these activities during September 2023, the first
month of operations:
Sept. 1 Began a public accounting practice by investing $48,000 in cash and office equipment
having a $11,800 fair value.
1 Prepaid cash for three months’ rent in advance on suitable office space, $8,700.
2 Purchased on credit used office equipment, $5,800, and office supplies, $1,180.
4 Completed accounting work for a client and immediately received payment of $6,000 cash.
8 Completed accounting work on credit for Frontier Bank, $3,800.
10 Paid for the items purchased on credit on September 2.
14 Paid the annual $2,800 premium on an insurance policy.
15 Registered to attend an all-day seminar, costing $800 on October 20 regarding ethical
accounting practices and will pay when attending.
18 Received $1,400 from Frontier Bank for the work completed on September 8.
24 Completed accounting work on credit for Travis Realty, $2,750.
28 Withdrew $3,400 cash from the practice to pay personal expenses.
29 Purchased additional office supplies on credit, $630.
30 Paid the September utility bills, $840.
• Required
Prepare
Prepare the unadjusted
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