Mailin Moon is a freelance writer who submits articles to various magazines and newspapers. She operates out of a small office where she employs one administrative assistant. The following activities occurred during March 2023, her first month of business: a. Moon invested $2,800 worth of equipment into her business along with $3,300 cash. b. Submitted a series of articles to The Globe and Mail and received $6,800 cash. c. Purchased supplies on credit; $750. d. Paid the part-time administrative assistant's salary of $1,480. e. Moon ordered $3,300 of office equipment from the IKEA catalogue. It is scheduled to arrive in April or May 1. Paid the rent for the first month; $1,700. g. Submitted an article to Report on Business, will receive $4,800 next month. Show the effects of the activities listed in (a) through (g). For each transaction that affects equity, select the appropriate description beside it (owner investment, owner withdrawal, revenue, rent expense, and salaries expense). (Enter all amounts as positive values. If the transaction/event does not affect equity or does not require a journal entry, select "No Affect on Equity" in the 'Explanation of equity transaction field.) Cash Accounts Receivable Assets Supplies Equipment Liabilities Accounts Payable . Equity Mailin Moon, Capital Explanation of Equity Transaction
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.
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