Kolly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. The accounting cycle for Kelly Consulting for Apei, including financial statements, war ustrated in this chapter. During May, Kelly Consulting entered into the following transactions May 3 Received cash from chents as an advance payment for services to be provided and recorded it as unearned fees, $4,500 6 Received cash from clients on account, $2,.450 9 Paid cash for a newspaper advertisement $225 13 Paid Office Station Co. for part of the debt incurred on April 5, $840. 15 Recorded services provided on account for the period May 1-15, so,180 16 Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750. 17 Recorded cash Ikom cash clients for fees earned during the period May 1-16, $8.360 May 20 Purchased supplies on account, $735. 21 Recorded services provided on account for the period May 16-20, $4,820 25 Recorded cash from cash clients for fees eamed for the period May 17-23, $7.900. 27 Received cash from clients on account, $0,520. 28 Paid part-tme receptionist for two weeks' salary, $750. 30 Paid telephone bill for May, $260. 31 Paid electricity bil for May. $810 31 Recorded cash trom cash cients for fees earned for the period May 26-31, $3,300 31 Recorded services provided on account for the remainder of May. $2,650. 31 Paid dividends, $10,500
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 May Transactions and post these journals to their respective ledger accounts.
Note some of these accounts have balances at the end of April
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
