Journalize the following business transactions of Ms. Ella Beauty Salon 1. Ella invested 50,000 pesos in a beauty parlor Ms. Ella Beauty Salon. 2. She also invested equipment worth 55,000 and supplies worth 10,000. 3. She paid in advance the rent of the salon for 3 months worth 10,000 per month. 4. Received 12000 for the service rendered to various customers. 5. Billed the customer for 4500 for rebonding the hair of the customer. 6. Received the electric bill worth 4000. 7. Paid the telephone bill 1600 8. Ms. Ella withdrew 20,000 for personal use. 9. Bought additional supplies worth 10,000 on account. 10. Received 15,000 from various customers for the service rendered. 11. Paid the salaries of the employees worth 15,000 12. Collected the bill from customers worth 4500. 13. Billed the customer worth 5,000 14. Paid 5000 for the additional supplies previously bought on account 15. Received 2500 from the customer for the service rendered. Prepare the following
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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