DIRECTION: In bond/yellow paper or columnar pad, a. Journalize the transactions b. Post the transactions to the T-account c. Prepare a trial balance d. Prepare the financial statements Mr. Uzumaki Naruto invested for an IT business in July 1, 2022. The following transactions took place during the month. July 01 July 02 July 04 July 05 July 10 July 15 July 17 July 20 July 21 July 23 July 24 July 27 July 27 July 29 July 30 July 30 U. Naruto invested for an IT business in cash. Purchased computer in cash. Purchased supplies on account. Purchased printer on account. Paid partial to supplier payable on supplies. Sold payroll program on account. Did service to computer for cash. Partial collection of accounts receivable. Paid electrical bill in cash. Paid rental space for the month. Paid payable to suppliers on supplies. Paid salaries to employees. Paid telephone bills. Acquire loan from the bank payable in two years. U. Naruto withdraws cash. Made partial payment to bank loan. P 150,000.00 30,000.00 10,000.00 5,000.00 5,000.00 50,000.00 10,000.00 25,000.00 3,000.00 5,000.00 5,000.00 10,000.00 5,000.00 50,000.00 20,000.00 5,000.00
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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where are the 4 financial statements?
income statement
balance sheet
financial position
cash flow statement
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