Lee Harris, MD, had the following balances in the ledger for his medical practice: Cash $8,830, Accounts Receivable $2,665, Supplies $565, Equiprment $15,650, Notes Payable $10,250, Accounts Payable $800. L. Harris, Capital $15,000, L. Harris, Drawings $5,180, Service Revenue $ 10.530, Rent Expense $1,220, and Salaries Expense $2,470. inJuly 31 and in augest the account is Date Account Titles Debit Credit 2024 Aug.1 Rent Expense 1,220 Cash 1,220 10 Accounts Payable 440 Cash 440 12 Cash 2,120 Accounts Receivable 2,120 25 Salaries Expense 2,470 Cash 2,470 30 Notes Payable 470 Interest Expense 35 Cash 505 31 Cash 5,890 Accounts Receivable 2,750 Service Revenue 8,640 31 L Harris, Drawings 4,520 Cash 4,520 Post the transactions to the T accounts.
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.
Lee Harris, MD, had the following balances in the ledger for his medical practice: Cash $8,830,
$2,665, Supplies $565, Equiprment $15,650, Notes Payable $10,250, Accounts Payable $800. L. Harris, Capital $15,000, L. Harris,
Drawings $5,180, Service Revenue $ 10.530, Rent Expense $1,220, and Salaries Expense $2,470.
inJuly 31
and in augest the account is
Date Account Titles
Debit Credit
2024
Aug.1 Rent Expense
1,220
Cash
1,220
10 Accounts Payable
440
Cash
440
12 Cash
2,120
Accounts Receivable
2,120
25 Salaries Expense
2,470
Cash
2,470
30 Notes Payable
470
Interest Expense
35
Cash
505
31 Cash
5,890
Accounts Receivable
2,750
Service Revenue
8,640
31 L Harris, Drawings
4,520
Cash
4,520
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