Mr. Mike Benter opened the Benter Servicing on June 1, 2019 with the following investments: 300, 000 Php. 200, 000 Php Cash Machinery On the same day Mr. Benter paid the following pre-operating expenses: Business permits and other taxes Rental for the next 3 months P 10, 000 15, 000 The following transactions occurred during June, 2019: Deposited P 250, 000 at Metro Bank. Rendered repair service to a customer and was paid by a note, P 3, 000. Bought shop supplies, P 2, 000, and office supplies, P 3, 000 on account. Received advances from customer, P 1, 000 for repair of equipment. Purchase office equipment costing P 15, 000 on account. 10 Received notes from customer for services rendered, P 15, 000 with 10% interest payable 30 days after date of note. Collected the account on June 3 transaction. June 2 3 5 7 8 12 Paid Bombo Radio Philippines for the cost of advertising, P10, 000 thru the issuance of check. 14 Deposited the amount collected on June 7 and June 12 trasactions. 15 | Paid the following expenses thru the issuance of check: P 2, 000 3, 000 5, 000 Electricity Bill Water Bill WIFI and Telephone connection Rendered repair services to the customer who made advance deposit on June 7, 2019. 17 20 Rendered various maintenance and repair services: P 12, 000 20, 000 28 Paid the salaries and wages of shop workers for the month, P 15, 000, Cash basis Credit basis from the available cash on hand. Required: 1. Prepare the journal entries. 2. Adjust all accounts that needs to be adjusted.
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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