he following transactions were entered into by Dr. Jo Valdez for June: 04 Jo Valdez opened "Jo's Health Spa" by investing P 1,500,000 cash and half of a lot inherited by Jo and her sister Ann worth P 500,000. Interviewed a nurse and a business graduate to work for her for a salary of P 15,000 Valdez bought for cash P 900,000 worth of equipment and P 15,000 worth of supplies Bought furniture and fixtures from a friend at a cost of P 150,000, promising to pay after 7 days. Only P 80,000 of this was placed in the clinic. The remaining P 70,000 furniture & fixtures were placed in her condominium unit Applied for a P 2,500,000 business loan from a bank by mortgaging her inherited lot. The money will be used to construct the clinic. Withdrew supplies worth P 2,000 for personal use The loan was approved, and the money deposited for the account of the health spa Paid one half of the amount due on the furniture and fixtures. A two-story clinic was constructed on the inherited lot. The construction cost amounted to P 2,400.000. Term: down payment P 500,000 and a note for the balance. 07 08 10 12 14 15 17 30 (a) Analyze the transactions in an accounting equation similar to the Clearcopy demonstration format. Include money columns for Cash, Supplies, Land, Building, Equipment, Furniture and Fixtures, Accounts Payable, Loans Payable, Valdez, Capital (b) Prepare St
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.
The following transactions were entered into by Dr. Jo Valdez for June: 04 Jo Valdez opened "Jo's Health Spa" by investing P 1,500,000 cash and half of a lot inherited by Jo and her sister Ann worth P 500,000. Interviewed a nurse and a business graduate to work for her for a salary of P 15,000 Valdez bought for cash P 900,000 worth of equipment and P 15,000 worth of supplies Bought furniture and fixtures from a friend at a cost of P 150,000, promising to pay after 7 days. Only P 80,000 of this was placed in the clinic. The remaining P 70,000 furniture & fixtures were placed in her condominium unit Applied for a P 2,500,000 business loan from a bank by mortgaging her inherited lot. The money will be used to construct the clinic. Withdrew supplies worth P 2,000 for personal use The loan was approved, and the money deposited for the account of the health spa Paid one half of the amount due on the furniture and fixtures. A two-story clinic was constructed on the inherited lot. The construction cost amounted to P 2,400.000. Term: down payment P 500,000 and a note for the balance. 07 08 10 12 14 15 17 30 (a) Analyze the transactions in an
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