I have done some....can you correct what i have done and complete it? Journalize the transactions for May. May 1 Paid rent for May, $5,000. 3 Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. 4 Paid freight on purchase of May 3, $600. 6 Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000. 7 Received $22,300 cash from Halstad Co. on account. 10 Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000. 13 Paid for merchandise purchased on May 3. 15 Paid advertising expense for last half of May, $11,000. 16 Received cash from sale of May 6. 19 Purchased merchandise for cash, $18,700. 19 Paid $33,450 to Buttons Co. on account. 20 Paid Korman Co. a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co. kept the merchandise. CHART OF ACCOUNTSPalisade Creek Co.General Ledger ASSETS 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 Prepaid Insurance 118 Store Supplies 123 Store Equipment 124 Accumulated Depreciation-Store Equipment LIABILITIES 210 Accounts Payable 211 Customer Refunds Payable 212 Salaries Payable EQUITY 310 Lynn Tolley, Capital 311 Lynn Tolley, Drawing REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 539 Miscellaneous Administrative Expense JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 May 1 Rent Expense 531 $5000 2 Cash 110 $5,000 3 May 3 Merchandise Inventory 115 $36,000 4 Accts Pyable 210 $36,000 5 May 4 $600 6 7 6 Cost of Merch sold 510 $41,000 8 Accts pyable 210 9 7 Accts receivable 112 $22,300 10 Cash 110 $22,300 11 10 Cash 110 $54,000 12 Cost Merch sold 510 $32,000 13 13 $36,000 14 15 15 Advertising Expense 521 $11,000 16 17 16 Accts Receivable 112 $68,500 18 19 19 Merch Inventory 115 $18,700 20 21 19 $33,450 22 23 20 Customer Refunds Pyble 211 $5,000 24 25 26 27 28
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.
I have done some....can you correct what i have done and complete it?
Journalize the transactions for May.
| May | 1 | Paid rent for May, $5,000. |
| 3 | Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. | |
| 4 | Paid freight on purchase of May 3, $600. | |
| 6 | Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000. | |
| 7 | Received $22,300 cash from Halstad Co. on account. | |
| 10 | Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000. | |
| 13 | Paid for merchandise purchased on May 3. | |
| 15 | Paid advertising expense for last half of May, $11,000. | |
| 16 | Received cash from sale of May 6. | |
| 19 | Purchased merchandise for cash, $18,700. | |
| 19 | Paid $33,450 to Buttons Co. on account. | |
| 20 | Paid Korman Co. a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co. kept the merchandise. |
CHART OF ACCOUNTSPalisade Creek Co.General Ledger
| ASSETS | |
| 110 | Cash |
| 112 | |
| 115 | Merchandise Inventory |
| 117 | Prepaid Insurance |
| 118 | Store Supplies |
| 123 | Store Equipment |
| 124 |
| LIABILITIES | |
| 210 | Accounts Payable |
| 211 | Customer Refunds Payable |
| 212 | Salaries Payable |
| EQUITY | |
| 310 | Lynn Tolley, Capital |
| 311 | Lynn Tolley, Drawing |
| REVENUE | |
| 410 | Sales |
| EXPENSES | |
| 510 | Cost of Merchandise Sold |
| 520 | Sales Salaries Expense |
| 521 | Advertising Expense |
| 522 | Depreciation Expense |
| 523 | Store Supplies Expense |
| 529 | Miscellaneous Selling Expense |
| 530 | Office Salaries Expense |
| 531 | Rent Expense |
| 532 | Insurance Expense |
| 539 | Miscellaneous Administrative Expense |
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
|---|---|---|---|---|---|---|---|---|
|
1
|
May 1
|
Rent Expense
|
531
|
$5000
|
|
|
|
|
|
2
|
|
Cash
|
110
|
|
$5,000
|
|
|
|
|
3
|
May 3
|
Merchandise Inventory
|
115
|
$36,000
|
|
|
|
|
|
4
|
|
Accts Pyable
|
210
|
|
$36,000
|
|
|
|
|
5
|
May 4
|
|
|
$600
|
|
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
7
|
6
|
Cost of Merch sold
|
510
|
|
$41,000
|
|
|
|
|
8
|
|
Accts pyable
|
210
|
|
|
|
|
|
|
9
|
7
|
Accts receivable
|
112
|
$22,300
|
|
|
|
|
|
10
|
|
Cash
|
110
|
|
$22,300
|
|
|
|
|
11
|
10
|
Cash
|
110 |
$54,000
|
|
|
|
|
|
12
|
|
Cost Merch sold
|
510
|
|
$32,000
|
|
|
|
|
13
|
13
|
|
|
$36,000
|
|
|
|
|
|
14
|
|
|
|
|
|
|
|
|
|
15
|
15
|
Advertising Expense
|
521
|
$11,000
|
|
|
|
|
|
16
|
|
|
|
|
|
|
|
|
|
17
|
16
|
Accts Receivable
|
112
|
|
$68,500
|
|
|
|
|
18
|
|
|
|
|
|
|
|
|
|
19
|
19
|
Merch Inventory
|
115
|
$18,700
|
|
|
|
|
|
20
|
|
|
|
|
|
|
|
|
|
21
|
19 |
|
|
$33,450
|
|
|
|
|
|
22
|
|
|
|
|
|
|
|
|
|
23
|
20
|
Customer Refunds Pyble
|
211
|
$5,000
|
|
|
|
|
|
24
|
|
|
|
|
|
|
|
|
|
25
|
|
|
|
|
|
|
|
|
|
26
|
|
|
|
|
|
|
|
|
|
27
|
|
|
|
|
|
|
|
|
|
28
|
|
|
|
|
|
|
|
|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
