Ludi Victorino, a veteran photographer, opened a studio for her professional practice on July 1. Transactions completed during the month follow: a. Deposited P146,200 in a bank account in the name of the business, Victorino Photo Profiles b. Bought new photography equipment on account from Canon P71,210 c. Invested personal photography equipment into the business, P51,620 d. Paid office rent for the month, P5,500 e. Bought photography supplies for cash P7,960 f. Paid premium for insurance cover on equipment, P1,240 g. Received P8,960 as professional fees for services rendered h. Paid salary of assistant, P6,000 i. Received and paid telephone bill, P640 j. Paid Canon part of the amount owed on transaction ‘b’, P4,200 k. Received P15,480 for services rendered l. Paid repairs on equipment, P760 m. Withdrew cash for personal use, P9,600 Record the transactions for the month of july 2018 using a financial transaction worksheet. Use the following accounts: cash, account receivable, supplies, prepaid insurance, photography equipment, account payable, and victorino, capital. If the owners equity account is affected by a transaction, identify it as revenue, expense, investment or withdrawal.
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.
Ludi Victorino, a veteran photographer, opened a studio for her professional practice on July 1. Transactions completed during the month follow:
a. Deposited P146,200 in a bank account in the name of the business, Victorino Photo Profiles
b. Bought new photography equipment on account from Canon P71,210
c. Invested personal photography equipment into the business, P51,620
d. Paid office rent for the month, P5,500
e. Bought photography supplies for cash P7,960
f. Paid premium for insurance cover on equipment, P1,240
g. Received P8,960 as professional fees for services rendered
h. Paid salary of assistant, P6,000
i. Received and paid telephone bill, P640
j. Paid Canon part of the amount owed on transaction ‘b’, P4,200
k. Received P15,480 for services rendered
l. Paid repairs on equipment, P760
m. Withdrew cash for personal use, P9,600
Record the transactions for the month of july 2018 using a financial transaction worksheet. Use the following accounts: cash, account receivable, supplies, prepaid insurance, photography equipment, account payable, and victorino, capital. If the owners equity account is affected by a transaction, identify it as revenue, expense, investment or withdrawal.
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