I. II. PREPARE ALL THE ADJUSTING ENTRIES SHOWING THE DETAILED COMPUTATIONS. PREPARE THE WORKING PAPER OF VICTORY COMPANY. At the end of the calendar year 2021, VICTORY COMPANY accounting in charge has to make some adjustments to its Unadjusted trial balance in order to reflect the correct accounts and figures for the current year's financial statements. The following are the transactions that needs to be recorded as adjusting entries. 1 The vehicle the company bought in February 1, 2021 needs to be depreciated. It has an estimated salvage value of 25% of the cost and a usefull of 4 years. PUT YOUR COMPUTATIONS HERE: 2 The office tables and chairs amounting to P100,000.00 has a useful life of 3 years with a salvage value of P20,000.00. These were bought January 15, 2021. PUT YOUR COMPUTATIONS HERE: 3 The company estimated a 10% doubtful accounts of all of its receivables. PUT YOUR COMPUTATIONS HERE: 4 The advance payment to Bros Advertising was made last June 10, 2021 covering 12 months. PUT YOUR COMPUTATIONS HERE: 5 The company rented a display room in a mall and paid P15,000.00 per month straight contract covering July 1, 2021 to June 30, 2022. PUT YOUR COMPUTATIONS HERE: 6 The company received P220,000.00 on November 10, 2021 advance payment from its client for goods purchased and yet to be delivered to the client. PUT YOUR COMPUTATIONS HERE: 7 The company has to recognize the salaries of its employees for the period December 16, 2021 - December 31, 2021 amounting to P75,000.00 PUT YOUR COMPUTATIONS HERE: 8 The company has unpaid utility bills amounting to P23,000.00. PUT YOUR COMPUTATIONS HERE: 9 The president of the company decided to invest unused cash of the company in treasury bills. The invested amount was P130,000.00 made on December 5, 2021 with an interest of 5% and will mature on February 4, 2022. PUT YOUR COMPUTATIONS HERE: 10 The accountant found out that the were plane tickets of the presidents not yet paid amounting to P30,000.00 PUT YOUR COMPUTATIONS HERE: Accounts Cash Accounts Receivable Notes Receivable Prepaid Advertising Furnitures and Fixtures Vehicle Accounts Payable Loans Payable Legaspi, Capital Legaspi, Withdrawal Service revenue Transportation expense Salaries exp TOTAL VICTORY COMPANY Unadjusted Trial Balance Deember 31, 2021 DR 500,000.00 750,000.00 50,000.00 100,000.00 200,000.00 1,000,000.00 0 0 0 120,000.00 0 75,000.00 700,000.00 3,495,000.00 CR 150,000. 150,000. 1,000,000. 1,500,000. 2,800,000.
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.
I. Prepare all the
II. Prepare the working paper of Victory Company.
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