Lamplight Plus sells lamps to consumers. The company contracts with a supplier who provides them with lamp fixtures. There is an agreement that Lamplight Plus is not required to provide cash payment immediately and instead will provide payment within thirty days of the invoice date. Cash Accounts Payable Purchases Accounts Receivable Merchandise Inventory Sales Provide the journal entries for the following transactions assuming a perpetual inventory system using the account names above Lamplight purchases thirty light fixtures for $20 each on August 1, invoice date August 1, with no discount terms Lamplight returns ten light fixtures, receiving a credit amount for the full purchase price on August 3: Lamplight purchases an additional fifteen light fixtures for $15 each on August 19, invoice date August 19, with no discount terms: Lamplight pays $100 toward its account on August 22. What amount does Lamplight Plus still owe to the supplier on August 30
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.
Lamplight Plus sells lamps to consumers. The company contracts with a supplier who provides them with lamp fixtures. There is an agreement that Lamplight Plus is not required to provide cash payment immediately and instead will provide payment within thirty days of the invoice date.
| Cash | Accounts Payable | Purchases |
| Merchandise Inventory | Sales |
- Provide the
journal entries for the following transactions assuming a perpetual inventory system using the account names above- Lamplight purchases thirty light fixtures for $20 each on August 1, invoice date August 1, with no discount terms
- Lamplight returns ten light fixtures, receiving a credit amount for the full purchase price on August 3:
- Lamplight purchases an additional fifteen light fixtures for $15 each on August 19, invoice date August 19, with no discount terms:
- Lamplight pays $100 toward its account on August 22.
- What amount does Lamplight Plus still owe to the supplier on August 30?
Perpetual inventory system is one of a method used in accounting for inventory, under this method inventory is recorded after each single transaction made whether it is purchased or sales. Inventory value is affected and recorded after each single sale or purchase so that correct or real value of inventory can be determined.
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