Journalize the adjusting entries for the year-end. Additional Information a. Physical count of unused supplies on December 31 were conducted and amounted to P900. b. Equipment is being depreciated over a 10 year period without salvage value. The equipment was purchased two years ago. c. Prepaid rent reflected in the unadjusted trial balance was paid on September 1 to cover six-month period. d. Last two-week salary at P2,750 per week for the month of December will be paid on January 3 of the following year. e. The balance of unearned fees at December 31 should be P5,500. f. Lopez additional fee of P12,250 from his last client was still unrecorded and remained uncollected at year-end. Debit Credit Cash 136,350 Accounts receivables 29,250 Supplies 2,700 Prepaid rent 18,000 Equipment 70,000 Accumulated Depreciation 14,000 Salary payable 0 Unearned fees 26,500 Fees earned 299,800 Salaries expenses 60,000 Rent expense 24,000 Supplies expenses 0 Depreciation expense 0 Total 340,300 340,300
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.
Journalize the
Additional Information
a. Physical count of unused supplies on December 31 were conducted and amounted to P900.
b. Equipment is being
c. Prepaid rent reflected in the unadjusted
d. Last two-week salary at P2,750 per week for the month of December will be paid on January 3 of the following year.
e. The balance of unearned fees at December 31 should be P5,500.
f. Lopez additional fee of P12,250 from his last client was still unrecorded and remained uncollected at year-end.
|
Debit |
Credit |
|
|
Cash |
136,350 |
|
|
|
29,250 |
|
|
Supplies |
2,700 |
|
|
Prepaid rent |
18,000 |
|
|
Equipment |
70,000 |
|
|
|
14,000 |
|
|
Salary payable |
0 |
|
|
Unearned fees |
26,500 |
|
|
Fees earned |
299,800 |
|
|
Salaries expenses |
60,000 |
|
|
Rent expense |
24,000 |
|
|
Supplies expenses |
0 |
|
|
Depreciation expense |
0 |
|
|
Total |
340,300 |
340,300 |
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