Journalize the necessary adjusting entry for each of the following independent situations: 1. The supplies account balance on September 1, 2020, is $3,975. The supplies on hand on September 30th is $1,050. 2. On January 1, 2020, the company paid $3,600 for an annual (12 month) flood insurance policy covering their headquarter building. a) Assume the company has a monthly accounting period, prepare the adjusting entry needed at the end of January. b) Assume the company has a quarterly accounting period (report once every 3 months). Prepare the entry needed at the end of the first quarter
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 necessary
1. The supplies account balance on September 1, 2020, is $3,975. The supplies on hand on
September 30th is $1,050.
2. On January 1, 2020, the company paid $3,600 for an annual (12 month) flood insurance
policy covering their headquarter building.
a) Assume the company has a monthly accounting period, prepare the adjusting entry
needed at the end of January.
b) Assume the company has a quarterly accounting period (report once every 3
months). Prepare the entry needed at the end of the first quarter.
3. A business pays its employees $1,500 per day and payday is each Friday.
a) Prepare the adjusting entry needed if the end of the accounting period falls on
Monday.
b) Prepare the adjusting entry needed if the end of the accounting period falls on
Thursday.
4. On October 1, a tenant pays their landlord $2,500 for five months' rent.
a) Prepare the entry needed on October 1st to record this transaction
b) Prepare the adjusting entry needed on October 31st
.
c) Prepare the entry needed on October 1st if you are the Landlord
d) Prepare the adjusting entry needed on October 31st if you are the Landlord.
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