Jan 7, 2019: Owner invested cash in the business amounting to 300,000 Jan 22, 2019: Purchased equipment for cash amounting to 50,000. Mar 31, 2019: Purchased inventories through credit amounting to 35,000. May 19, 2019: Purchased furniture amounting to 30,000. Made partial payment with cash 10,000 and incurred an accounts payable for the balance (20,000) June 11, 2019: Paid cash to the local government for business permit (9,000) July 9, 2019: Made sales of 17,000 (12,000 cash sales, 5,000 credit sales). July 30, 2019: The cost of the sales made on July 9, 2019 amounted to 8,500. Aug 23, 2019: Paid the accounts payable for May 19, 2019. Oct 15, 2019: Bought 25,000 computed with 2% discount Dec 28, 2019: Collected 2,500 from the sales on July 9, 2019. Dec 31, 2019: Paid employee 12,000. A. The following are Princess Janelle Trading Enterprises adjustments at the end of the year 2019. 1. The accounts receivable, if any, has a doubtful account of 2.5%. 2. Supplies expense is 70% of the supplies. 3. Equipment is depreciated at 10 useful years with salvage value of 5% of the book value. 4. Furniture and Fixtures are depreciated at 5 useful years with no salvage value. 5. Utilities amounted to 3, 500. 6. Unpaid salaries amounted to 2, 500. *Journalize and post the adjustments of the Janelle Trading Enterprises then prepare the adjusted trial balance using the prescribed worksheet.
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.
Jan 7, 2019: Owner invested cash in the business amounting to 300,000
Jan 22, 2019: Purchased equipment for cash amounting to 50,000.
Mar 31, 2019: Purchased inventories through credit amounting to 35,000.
May 19, 2019: Purchased furniture amounting to 30,000. Made partial payment with cash 10,000 and incurred an accounts payable for the balance (20,000)
June 11, 2019: Paid cash to the local government for business permit (9,000)
July 9, 2019: Made sales of 17,000 (12,000 cash sales, 5,000 credit sales).
July 30, 2019: The cost of the sales made on July 9, 2019 amounted to 8,500.
Aug 23, 2019: Paid the accounts payable for May 19, 2019.
Oct 15, 2019: Bought 25,000 computed with 2% discount
Dec 28, 2019: Collected 2,500 from the sales on July 9, 2019.
Dec 31, 2019: Paid employee 12,000.
*Journalize and post the adjustments of the Janelle Trading Enterprises then prepare the adjusted
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