Mr. Joshua A. opened his laundry business in Cavite City on January 2, 2016. The following transactions occurred during the month of January 2016: Please prepare the following reports: 1.General Journal 2.General Ledger 3.Unadjusted Trial Balance Date Transactions 1/2/16 Invested PHP500,000 to his business. The trade name of the business was "MR. LABADERO" 1/3/16 Hired Allan and Allie who will manage his business 1/4/16 Collections from various customers for the day - PHP3,000 1/5/16 Purchase store supplies from Labada Store - PHP10,000 1/7/16 Collections from various customers for the day - PHP8,000 1/8/16 MR. LABADERO entered into an exclusive contract with Sikat Hotel where the business will do all the laundry of the hotel. 1/9/16 Sikat Hotel availed the services of MR. LABADERO amounting to PHP15,000. Payment will be made on January 20, 2016. 1/10/16 Collections from various customers for the day - PHP12,000 1/12/16 Purchase a washing machine amounting to PHP50,000 1/15/16 Collections from various customers for the day - PHP20,000 1/19/16 Paid electricity bill for the month amounting to PHP18,000 1/20/16 Received payment from Sikat Hotel amounting to PHP15,000 1/21/16 Paid salaries of Allan and Allie - PHP15,000 1/22/16 Mr. Joshua A. needed money for the hospitalization of his son. He withdrew PHP18,000 from the business 1/25/16 Paid airfare ticket of PHP1,500 for the travel of Mr. Joshua A. to Palawan to negotiate a contract with Sosyal Hote 1/26/16 Paid taxes to the City of Cavite, PHP4,000 1/27/16 Purchased office supplies amounting to PHP12,500 1/28/16 Collections from various customer for the day - PHP5,000 1/29/16 Sosyal Hotel availed the services of MR. LABADERO amounting to PHP15,000 payable on Feb 25, 2016.
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.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
