Fundamentals in Accounting, Business and Management1 Journalizing Transaction Practice INSTRUCTION: Journalize each transaction. SAMPLE. Invested 100,000 cash in a laundry business. (DR) Cash 100,000 (CR) Capital 100,000 1. Bought laundry equipment paying partial 500,000 cash and the 200,000 balance on account. 2. Received 50,000 cash for laundry services. 3. Paid the balance in number 1. 4. A customer issued a 30,000 15-day note for laundry services rendered. 5. The owner withdraws cash of 50,000. 6. The customer who issued the note in number 4 paid his account. 7. Paid 54,000 Meralco bills for the month. 8. Borrowed 1,000,000 from a bank and issued a note for the principal. 9. Paid the 6,500 salaries of the helper. 10. Lyra Villareal invested P100,000 to start an accounting office. 11. Purchased office supplies worth P20,000 on account. 12. Paid the account in number 11. 13. Rendered accounting services for cash, P50,000. 14. Rendered tax services on account, P30,000. 15. Paid Meralco bills, P3,500. 16. Collected P10,000 from customer. 17.A short-term loan from a local bank is granted in the amount P50,000. 18. L. Villareal withdraws P20,000. 19. Paid the salary of J. Abel, P20,000.
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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