Kristin Malone opened Kristin’s Maids Cleaning Service on July 1, 2019. During July, the company completed the following transactions. July 1 Stockholders invested $17,000 cash in the business in exchange for common stock. 1 Purchased a used truck for $10,000, paying $3,100 cash and the balance on account. 3 Purchased cleaning supplies for $800 on account. 5 Paid $2,352 on a 1-year insurance policy, effective July 1. 12 Billed customers $3,900 for cleaning services. 18 Paid $1,300 of amount owed on truck, and $200 of amount owed on cleaning supplies. 20 Paid $1,600 for employee salaries. 21 Collected $1,500 from customers billed on July 12. 25 Billed customers $1,500 for cleaning services. 31 Paid gasoline for the month on the truck, $200. 31 Declared and paid a $600 cash dividend. The chart of accounts for Kristin’s Maids Cleaning Service contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation—Equipment, No. 201 Accounts Payable, No. 212 Salaries and Wages Payable, No. 311 Common Stock, No. 320 Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 631 Supplies Expense, No. 633 Gasoline Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries and Wages Expense. Q1). Need help to journalize the closing entries...Please see image 1. Q2). Need help to post the closing entries and complete the closing process...please see image 2.
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.
Kristin Malone opened Kristin’s Maids Cleaning Service on July 1, 2019. During July, the company completed the following transactions.
| July | 1 | Stockholders invested $17,000 cash in the business in exchange for common stock. | |
| 1 | Purchased a used truck for $10,000, paying $3,100 cash and the balance on account. | ||
| 3 | Purchased cleaning supplies for $800 on account. | ||
| 5 | Paid $2,352 on a 1-year insurance policy, effective July 1. | ||
| 12 | Billed customers $3,900 for cleaning services. | ||
| 18 | Paid $1,300 of amount owed on truck, and $200 of amount owed on cleaning supplies. | ||
| 20 | Paid $1,600 for employee salaries. | ||
| 21 | Collected $1,500 from customers billed on July 12. | ||
| 25 | Billed customers $1,500 for cleaning services. | ||
| 31 | Paid gasoline for the month on the truck, $200. | ||
| 31 | Declared and paid a $600 cash dividend. |
The chart of accounts for Kristin’s Maids Cleaning Service contains the following accounts: No. 101 Cash, No. 112
Q1). Need help to journalize the closing entries...Please see image 1.
Q2). Need help to
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