Journalize the following selected transactions for January in good form. Jan. 1 Received cash from the sale of common stock, $14,000. 2 Received cash for providing accounting services, $9,500. 3 Billed customers on account for providing services, $4,200. 4 Paid advertising expense, $700. 5 Received cash from customers on account, $2,500. 6 Paid dividends, $1,010. 7 Received telephone bill, $900. 8 Paid telephone bill, $900. Jordon James started JJJ Consulting on January 1. The following are the account balances at the end of the first month of business, before adjusting entries were recorded: Accounts Payable $ 300 Accounts Receivable 750 Cash 6,300 Consulting Revenue 4,925 Equipment 7,000 Common Stock 15,000 Dividends 1,375 Prepaid Rent 4,000 Supplies 800 Adjustment data: Supplies on hand at the end of the month, $200 Unbilled consulting revenue, $700 Rent expense for the month, $1,000 Depreciation on equipment, $90 (a) Prepare the required adjusting entries, adding accounts as needed.
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 following selected transactions for January in good form.
|
Jan. |
1 |
Received cash from the sale of common stock, $14,000. |
|
|
2 |
Received cash for providing accounting services, $9,500. |
|
|
3 |
Billed customers on account for providing services, $4,200. |
|
|
4 |
Paid advertising expense, $700. |
|
|
5 |
Received cash from customers on account, $2,500. |
|
|
6 |
Paid dividends, $1,010. |
|
|
7 |
Received telephone bill, $900. |
|
|
8 |
Paid telephone bill, $900. |
Jordon James started JJJ Consulting on January 1. The following are the account balances at the end of the first month of business, before
|
Accounts Payable |
$ 300 |
|
Accounts Receivable |
750 |
|
Cash |
6,300 |
|
Consulting Revenue |
4,925 |
|
Equipment |
7,000 |
|
Common Stock |
15,000 |
|
Dividends |
1,375 |
|
Prepaid Rent |
4,000 |
|
Supplies |
800 |
Adjustment data:
Supplies on hand at the end of the month, $200
Unbilled consulting revenue, $700
Rent expense for the month, $1,000
Depreciation on equipment, $90
(a) Prepare the required adjusting entries, adding accounts as needed.
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