Journalize the f, transactions below using the Perpetual and Periodic Inventory Jan. 1 Mr. Montero, the owner of Venus W.S. started the business by Inventing P120, 000 Jan, 2 Purchase merchandise on account from the Enterprise Yale Merchandise P30,000. 2/10, n/30 FOB Shipping Point Jan. 3 Sold P15,000 worth of goods for cash. The cost of G.S is P8,000. Jan. 5 Sold 12,000 worth of goods on credit to Alpha Sales Inc. with terms 2/10, n/30 FOB Destination. COGS P6,500 Jan, 6 Paid P500 for delivery of goods to Alpha Sales Inc. Jan. 6 Received P1,200 credit memo from Yale Enterprises for the return of unsatisfactory goods Jan, 10 Purchase merchandise on cash P25,000. Jan. 11 Made a full payment to Yale Enterprises. Jan. 11 Purchase supplies for cash P2,000. Jan. 13 Purchase merchandise for cash P30,000. Jan. 14 Made a Sale to Lite Shipping 24,000 with credit terms 2/10,n/30 FOB Destination, COGS P12,700 Jan. 15 Received payment from Alpha Sales regarding the Jan. 5 sales Jan, 15 Paid salaries of P6,500. Issued a credit memo for P1,000 to Lite Shipping from the return of unsatisfactory goods, return goods value of P600. Jan. 16 Jan. 17 Received refund for poor quality merchandise from supplier for cash purchase P700. Jan. 18 Mr. Montero withdraw cash from the business P12, 000. Jan. 19 Purchase office equipment for cash P15, 000. Jan. 19 Purchase merchandise from Kaunlaran on account P18,000. 2/10,n/30 FOB Shipping Point Jan. 20 The business made a loan at RCBC Savings Bank and issued a promissory note at P50,000 Jan. 22 Paid freight for the purchase of merchandise P750. Jan. 25 Sold merchandise for cash P33, 300, COGS P18, 000 Jan. 25 Made a partial payment to Kaunlaran Enterprises P10,000.No discount for partial payment made. Jan. 26 Made refunds for cash customer for defective merchandise for P1,500 Jan, 30 Received full payment from Lite Shipping Jan. 31 Paid the ff. operating expenses for the month Salaries 6,500 Rent 7,000 Utilities 1,500 Advertising 1,200.
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.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 11 images
