John Doe founded Premier Construction. Operations started on October 1, 2021. John’s son, a teenager, kept the books for the first two months. John decides that it is time to hire a bookkeeper with formal training. He asks you to record the activity for December and to complete the accounting cycle for the quarter ended December 31, 2021. The trial balance as of 11/30/2021 and the detail for the Accounts Receivable account balance is on page 2. The December 2021 events are on page 3. Additional Information: • Ellie Smith is the only employee. She is paid on the 1st of month for the pay period ending on the last day of the prior month and on the 16th of the month for the pay period covering the first fifteen days of the current month. Required 1. Enter the balances as of 11/30/2021 in the general ledger. 2. Prepare journal entries to record each of the December transactions for Premier Construction. If an event is not a transaction, write the date and “no entry needed” on the journal page. The explanation on the journal and in the general ledger must include at a minimum the available document reference and a name (for example Check 100; Ellie Smith). 3. Post those entries to the accounts in the ledger. The explanation in the general ledger must include at a minimum the available document reference and a name (for example Check 100; Ellie Smith). 4. Prepare the unadjusted trial balance at 12/31/21
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.
John Doe founded Premier Construction. Operations started on October 1, 2021.
John’s son, a teenager, kept the books for the first two months. John decides that it is time
to hire a bookkeeper with formal training. He asks you to record the activity for December
and to complete the accounting cycle for the quarter ended December 31, 2021.
The
balance is on page 2.
The December 2021 events are on page 3.
Additional Information:
• Ellie Smith is the only employee. She is paid on the 1st of month for the pay period
ending on the last day of the prior month and on the 16th of the month for the pay
period covering the first fifteen days of the current month.
Required
1. Enter the balances as of 11/30/2021 in the general ledger.
2. Prepare
Construction.
If an event is not a transaction, write the date and “no entry needed” on the
journal page.
The explanation on the journal and in the general ledger must include at a
minimum the available document reference and a name (for example Check 100;
Ellie Smith).
3. Post those entries to the accounts in the ledger.
The explanation in the general ledger must include at a minimum the available
document reference and a name (for example Check 100; Ellie Smith).
4. Prepare the unadjusted trial balance at 12/31/21
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