Journalize the transactions for the month of December 2022 (Explanation is not required).
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.
The following were selected from among the transactions completed by Azman Trading during December of the current year.
Dec 3. Purchased merchandise on account from Tania Enterprise, list price RM24,000, trade discount 25%, term FOB shipping point, 2/10, n30, with prepaid transportation cost of RM615 added to the invoice.
5. Purchased merchandise on account from Mama Enterprise, RM10,250, terms FOB destination, 2/10, n30.
6. Sold merchandise on account to Melati Borong, list price RM18,000, trade discount 35%, terms 2/10, n30. The cost of merchandise sold was RM8,250.
7. Returned RM1,800 of merchandise purchased on 5 December from Mama Enterprise.
13. Paid Tania Enterprise on account for purchase of 3 December, less discount.
15. Paid Mama Enterprise on account for purchase of 5 December, less return of December 7 and discount.
16. Received cash on account from sale of 6 December to Melati Borong, less discount.
19. Sold merchandise on MasterCard, RM39,500. The cost of the merchandise sold was RM23,700.
22. Sold merchandise on account to LCW Resources, RM11,300, terms 2/10, n30. The cost of the merchandise sold was RM6,700.
23. Sold merchandise for cash, RM17,680. The cost of the merchandise sold was RM9,100.
28. Received merchandise returned by LCW Resources from sale of 22 December, RM2,000. The cost of the returned merchandise was RM1,100.
31. Paid MasterCard service fee of RM1,050.
Journalize the transactions for the month of December 2022 (Explanation is not required).
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