From the information given below, determine the due date for the following notes: Date Issued Term of the Note Due Date 1. January 1 30 days __________ 2. January 15 30 days __________ 3. March 20 60 days __________ 4. March 20 3 months __________ 5. June 18 90 days __________ Compute the amount of accrued interest on the following notes: Principal Interest Rate Time Accrued Interest 6. $7,800 9.0% 75 days __________ 7. 3,600 12.5% 45 days __________ 8. 2,700 9.9% 90 days __________ 9. 4,300 6.2% 6 months __________ 10. 5,500 11.0% 120 days __________ Compute the number of days from the issue date to the maturity date for the following notes: Issue Date Maturity Date Term of the Note 11. March 14, 2020 June 12, 2020 __________ 12. September 27, 2020 December 11, 2020 __________ 13. November 11, 2020 March 14, 2021 __________ 14. July 31, 2020 October 29, 2020 __________ 15. June 29, 2020 July 11, 2020 __________
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.
| Date Issued |
Term of the Note |
Due Date |
|
| 1. | January 1 |
30 days |
__________ |
| 2. | January 15 |
30 days |
__________ |
| 3. | March 20 |
60 days |
__________ |
| 4. | March 20 |
3 months |
__________ |
| 5. | June 18 |
90 days |
__________ |
Compute the amount of accrued interest on the following notes:
|
|
Interest |
|
Accrued |
|
| 6. |
$7,800 |
9.0% |
75 days |
__________ |
| 7. |
3,600 |
12.5% |
45 days |
__________ |
| 8. |
2,700 |
9.9% |
90 days |
__________ |
| 9. |
4,300 |
6.2% |
6 months |
__________ |
| 10. |
5,500 |
11.0% |
120 days |
__________ |
Compute the number of days from the issue date to the maturity date for the following notes:
|
Issue Date |
Maturity Date |
Term of the Note |
|
| 11. | March 14, 2020 | June 12, 2020 |
__________ |
| 12. | September 27, 2020 | December 11, 2020 |
__________ |
| 13. | November 11, 2020 | March 14, 2021 |
__________ |
| 14. | July 31, 2020 | October 29, 2020 |
__________ |
| 15. | June 29, 2020 | July 11, 2020 |
__________ |
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