hassignment No. 2 Recording Transactions in a Financial Transaction Worksheet Nelson Daganta formed the Liceo Signages on October 1, 2020. He deposited P250,000 in GE Money Bank under the name of the new business entity. During the month of October 2020, the following transactions occurred: Oct. 2 Acquired a service vehicle in the amount of P195,000 on account. Acquired supplies for cash, P57,000. Received P87,500 cash for signs painted. 3 10 Paid the month's rent, P25,000. Painted signs for Cagayan Mobile on account, P170,000. Paid PS5,000 on account from Oct. 2. 11 12 Withdrew P25,000 for personal use. Collected P35,000 from Cagayan Mobile. Paid salaries of P57,000 for the month. 16 23 27 Paid BayanTel P7,500 for communication services for the month. Paid a bill from AdAsia for P5,500 of advertising for the month. 30 31 Required: Establish the following accounts in a financial transaction worksheet: Cash Accounts receivable Supplies Service vehicle Accounts payable Daganta, Capital Note: Use the required 2-column journal sheet for journalizing and ledger sheet/paper for posting.
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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