Journalizing Sales, Sales Returns and Allowances, and Cash Receipts Prepare journal entries for the following transactions. Aug. 4 Sold merchandise on account to S. Miller for $320 plus sales tax of 4%, with 2/10, n/30 cash discount terms. 6 Sold merchandise on account to K. Krtek for $210 plus sales tax of 4%. 10 S. Miller returned merchandise purchased on August 4 for $20 plus sales tax for credit. 13 S. Miller paid the balance due on her account. 15 K. Krtek returned merchandise purchased on August 6 for $40 plus sales tax for credit. 20 K. Krtek paid the balance due on his account. Page: 1 DATE ACCOUNT TITLE DOC. NO. POST. REF. DEBIT CREDIT 1 20-- Aug. 4 fill in the blank 2 fill in the blank 3 1 2 fill in the blank 5 fill in the blank 6 2 3 fill in the blank 8 fill in the blank 9 3 4 4 5 Aug. 6 fill in the blank 11 fill in the blank 12 5 6 fill in the blank 14 fill in the blank 15 6 7 fill in the blank 17 fill in the blank 18 7 8 8 9 Aug. 10 fill in the blank 20 fill in the blank 21 9 10 fill in the blank 23 fill in the blank 24 10 11 fill in the blank 26 fill in the blank 27 11 12 12 13 Aug. 13 fill in the blank 29 fill in the blank 30 13 14 fill in the blank 32 fill in the blank 33 14 15 fill in the blank 35 fill in the blank 36 15 16 16 17 Aug. 15 fill in the blank 38 fill in the blank 39 17 18 fill in the blank 41 fill in the blank 42 18 19 fill in the blank 44 fill in the blank 45 19 20 20 21 Aug. 20 fill in the blank 47 fill in the blank 48 21 22 fill in the blank 50 fill in the blank 51 22 23 23
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.
Journalizing Sales, Sales Returns and Allowances, and Cash Receipts
Prepare
| Aug. 4 | Sold merchandise on account to S. Miller for $320 plus sales tax of 4%, with 2/10, n/30 cash discount terms. | |
| 6 | Sold merchandise on account to K. Krtek for $210 plus sales tax of 4%. | |
| 10 | S. Miller returned merchandise purchased on August 4 for $20 plus sales tax for credit. | |
| 13 | S. Miller paid the balance due on her account. | |
| 15 | K. Krtek returned merchandise purchased on August 6 for $40 plus sales tax for credit. | |
| 20 | K. Krtek paid the balance due on his account. |
Page: 1
| DATE | ACCOUNT TITLE | DOC. NO. |
POST. REF. |
DEBIT | CREDIT | ||
|---|---|---|---|---|---|---|---|
| 1 | 20-- Aug. 4 |
fill in the blank 2 | fill in the blank 3 | 1 | |||
| 2 | fill in the blank 5 | fill in the blank 6 | 2 | ||||
| 3 | fill in the blank 8 | fill in the blank 9 | 3 | ||||
| 4 | 4 | ||||||
| 5 | Aug. 6 | fill in the blank 11 | fill in the blank 12 | 5 | |||
| 6 | fill in the blank 14 | fill in the blank 15 | 6 | ||||
| 7 | fill in the blank 17 | fill in the blank 18 | 7 | ||||
| 8 | 8 | ||||||
| 9 | Aug. 10 | fill in the blank 20 | fill in the blank 21 | 9 | |||
| 10 | fill in the blank 23 | fill in the blank 24 | 10 | ||||
| 11 | fill in the blank 26 | fill in the blank 27 | 11 | ||||
| 12 | 12 | ||||||
| 13 | Aug. 13 | fill in the blank 29 | fill in the blank 30 | 13 | |||
| 14 | fill in the blank 32 | fill in the blank 33 | 14 | ||||
| 15 | fill in the blank 35 | fill in the blank 36 | 15 | ||||
| 16 | 16 | ||||||
| 17 | Aug. 15 | fill in the blank 38 | fill in the blank 39 | 17 | |||
| 18 | fill in the blank 41 | fill in the blank 42 | 18 | ||||
| 19 | fill in the blank 44 | fill in the blank 45 | 19 | ||||
| 20 | 20 | ||||||
| 21 | Aug. 20 | fill in the blank 47 | fill in the blank 48 | 21 | |||
| 22 | fill in the blank 50 | fill in the blank 51 | 22 | ||||
| 23 | 23 |
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