Journalize the following transactions of Jenbert’s Hair Salon for the month of October 2020, then post the transaction in T- Account. Prepare T-Posting.
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.
Directions: .Journalize the following transactions of Jenbert’s Hair Salon for the month of October 2020, then
October 2 Jenbert withdrew Php 500,000 from her personal account in Union Bank and deposited the
account to BPI under the account of Jenbert’s Hair Salon.
5 PurchasedSalon Equipment amounting Php 400,000 from Ceneta’s Electronics, Based on
agreed transaction Php 100,000 will be paid on credit account.
7 Bought Salon Supplies from Landmark Php 10,000 on account.
8 Purchased Office Supplies Php 2,500.
9 Purchased Furniture from Wilcon Depot Php 15,000.
10 Initial Payment to Ceneta’s Electronics Php 20,000.
12 Rendered salon services to Beauty Essentials on account Php 70,000.
14 Received cash from customer Php 2,000.
17 Salon service rendered for cash to client Adeline Php 3,000
20 Collection of account from Beauty Essentials.
25 Paid worker’s salaries Php 15,000.
26 Jenbert withdraw Php 2,000 for personal use.
28 Paid electric bill Php 8,000
30 Jenbert deposited Php 30,000 in a business account as additional investment.
31 Paid rent for the month Php 10,000
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