Napoh Nectar Sdn Bhd has the following accounts in its ledger: Cash, Accounts Receivable , Supplies; Office equipment; Accounts Payable , Swee Lian, Capital; Intake; Earnings; Rental Expenses; Advertising Spending; Utility Expenses; and Miscellaneous Shopping. The following are the business transactions of Napoh Nectar Sdn Bhd throughout the month of March 2012: March 1. Pay rent for the month of March $3,000 3. Pay advertising expenses of $3,300 4. Pay purchase for supplies $1,500 6. Buy office equipment on credit of $3,500 10. Receive a cash payment from the debtor of $4,600 12. Explain the payment to the supplier for the $900 credit purchase 20 Withdraw cash for personal use of $2,000 27. Pay cash for the repair of office equipment $700 30. Pay the phone bill for the current month of $250 31. Send a bill to the customer for the revenue obtained (but not yet received payment) $15,500 31. Pay the electricity bill for the current month of $650 BE REQUIRED: a. Prepare the journal entry for March 2012
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.
Napoh Nectar Sdn Bhd has the following accounts in its ledger:
Cash,
The following are the business transactions of Napoh Nectar Sdn Bhd throughout the month of March 2012:
March 1. Pay rent for the month of March $3,000
3. Pay advertising expenses of $3,300
4. Pay purchase for supplies $1,500
6. Buy office equipment on credit of $3,500
10. Receive a cash payment from the debtor of $4,600
12. Explain the payment to the supplier for the $900 credit purchase
20 Withdraw cash for personal use of $2,000
27. Pay cash for the repair of office equipment $700
30. Pay the phone bill for the current month of $250
31. Send a bill to the customer for the revenue obtained (but not yet received payment) $15,500
31. Pay the electricity bill for the current month of $650
BE REQUIRED:
a. Prepare the
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