Independent Exercise - Lakeside Golf Lakeside Gulf was purchased this year by Susan Stoddart. She operates the par-three golf course and driving range. The trial balance of the business on December 31, 2021 is shown below. Lakeside Gulf charges 13% HST on all sales, rentals, and food items. Day 1-Open Accounts into T-accounts 101 Bank 8750.20 105 Supplies - Golf Course 10236.00 110 Supplies - Office 3265.25 115 Property 215112.65 120 Buildings 128040.00 125 Automotive Equipment 30956.00 130 Maintenance Equipment 22650.60 201 Bank Loan 120000.00 250.50 205 A/P - Blair's Automotive 210 A/P - Main Supply 1890.65 3582.10 215 A/P-Pro Equipment 220 HST Payable 1065.00 225 HST Recoverable 277.50 170000.00 132027.46 230 Mortgage Payable 301 S. Stoddart, Capital 305 S. Stoddart, Drawings 401 Revenue - Golf 405 Revenue - Food 27000.00 89982.50 23875.75 8944.52 501 Automotive Expense 505 Bank Charges Expense 7842.25 510 Maintenance Expense 15846.28 515 Miscellaneous Expense 1525.75 520 Mortgage Interest Expense 6375.00 525 Telephone Expense 1028.33 530 Utilities Expense 9275.68 535 Wages Expense 45547.95 1. Calculate the debit and credit totals to ensure you balance before you begin. 2. Open T-accounts and beginning balance for each account on the Trial Balance. Be sure to leave enough space between accounts for the transactions below. Lakeside Golf TRIAL BALANCE December 31, 2021
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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