He intends to create a trial balance at the end of the month of August 2023. Please help him make the journal entries , t-accounts and trial balance.
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.
Justin Bieber started his own music label company CanLove with an initial investment of 2.5MM dollars in Pickering Ontario along with 500,000 new music equipment to record some new songs .
He intends to create a
Transactions occurred as follows:
August 1st Purchased furniture for the office on account for $15M
Aug 2nd Paid office rent for the month of August $30M
August 3rd Injected an additional $600M of his own personal funds to the company
August 4th took out a business loan from the bank for $100M to be paid in 30 days for the purchase of a new BMW X5
August 5th Purchased a new sound system on account totaling $45M which he paid $15M cash and the rest to be paid at the end of the month
August 8th Took Selena Gomez for a fancy dinner and paid $500 from the business account
August 9th rented a plane to take Drake and Celine Dion to discuss new business in Montreal paid $100M for 2 hours
August 10th paid $15M to CRA for taxes owed in arrears
August 12th Collected immediately $250M for singing to songs at the Eaton center in Toronto
August 14th received a cash advance for a world tour for a concert to take place in September 1MM promised to perform the services .
August 15th Received Telus bill for $3M
August 17th paid Mexican officials $30M to facilitate a permit to sign at a park
August 18th issued 1 MM worth of shares to raise funds from the public to pay for a new yacht for him and Selena Gomez .
August 19th paid personal assistant a salary of $10M for the month of August
August 20th open an investment account at the bank and deposited $200M
August 25th Paid vehicle repairs $10M at BMW for an addition to his vehicle.
A screenshot of the spreadsheet
the spreadsheet would be awesome. Thank you.
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