Learning Task 2: Journalize the entries for the following adjustments on December 31, the ed of the accounting period: a. Prepaid insurance expired, P 6,000. b. Interest revenue Accrued, P 41,000. C. Unearned service revenue earned, P8,000. d. Depreciation, P 62,000 e. Employee salaries owed for two days of a five-day workweek: weekly payroll, P 90,000. Learning Task 2: Journalize the entries for the following adjustments on December 31, the end of the accounting period:
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.
![Santos
LaN Fin
Nork sheet
month ended December 31, 2016
Adjusted
Trial balance
CR
DR
385,800
90,000
1,000
100,000
1,200,000
1,000
1,000,000
600,000
40.000
250,000
f.
Jaime
For the
Adjustments
DR
OR
(2) 4,000
Trial Balance
OR
cash
DR
985,800
Accounts Receivable 90,000
Office Supplies 5,000
Computer Equipment 100,000
Condominium Unit 1,200,000
Accounts Payable
Note Payable
1,000
1.000,000
600,000
Jaine Santos, Capital
Jaine Santos,
40,000
with drainals
Service Revenue
250.000
(3) 5,000
utilities Expense 6.200
Salary Expense. 15,000
Transportation Expore 9,000
Total
1,231,000 1,851.000
Step 1
(1) 10,000
Interest Receivable
(2) 4,000
Interest Incone
Office Supplies Exp.
Salary Payable
5,000
Depreciation Expens-
(4) 10,000
Computer Equipment
Depreciation Expons-
4 (20,000)
Condominium unit
Accumulated
Depreciation-
10.000
10,000
Computer Equipment
Accumulated
Pepreciation-
Condominium whit
20,000
1,896,000 1,896,000
Not Incone
49,000
240,000
69,200
190,800
260,000
20,000
1,826, 800 1. 696,000
190,800
260, 000 1.826, 800 1,224.800
STEP 45
STEP 12 ←
STEP 3
Learning Task 2: Journalize the entries for the following adjustments on December 31, the ed of
the accounting period:
a. Prepaid insurance expired, P 6,000.
b. Interest revenue Accrued, P 41,000.
C. Unearned service revenue earned, P8,000.
d. Depreciation, P 62,000
e. Employee salaries owed for two days of a five-day workweek: weekly payroll, P 90,000.
Learning Task 2: Journalize the entries for the following adjustments on December 31, the end
of the accounting period:
Account Titles
Debit
Credit
a.
b.
C.
d.
e.
(1) 10,000
(3) 5,000
6,200
20.000
9,000
10,000
4,000
10,000
20,000
(4) 10,000
(4) 20,000
49,000
Income statement Balance sheet
DR
CR
CR
DR
385,800
90,000
1,000
100,000
1,200,000
1,000
1,000,000
600,000
40,000
10,000
5,000
6, 200
20,000
9,000
4,000
10,000
20,000
250,000
10,000
10,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa99852df-c842-462a-a46f-ed378b3107be%2F24f97528-626e-4a4d-bec8-2dee50727e21%2Fam768xw_processed.jpeg&w=3840&q=75)
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