need special journal transaction for this
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.
i need special journal transaction for this
| 03-Sep | Bought merchandise from Min Ho Trading, P48,160, term: 2/10, 1/20, n/30 |
| 03-Sep | Freight on merchandise purchased from Min Ho: FOB Shipping point, Freight prepaid: P2,240 |
| 04-Sep | Received a credit memorandum from Min Ho Trading for defective merchandise returned, P3,360. |
| 06-Sep | Sold merchandise to Bee Hun, P16,800; term: 2/10, n/30 |
| 09-Sep | Purchased a cash register from Jun Song for P23,520; terms: P6,720 downpayment, balance in 2 equal monthly installments. |
| 10-Sep | Received a 20-day, 15% note from Seo Park, in exchange for loan of P15,000 extended to him |
| 11-Sep | Bought additional store supplies on credit from Bo Goom, P4,200. |
| 13-Sep | Paid Min Ho Trading in full. |
| 14-Sep | Discounted Seo Park's note to the bank, with recourse, at 18% discount rate. |
| 15-Sep | Received shipment of merchandise from Sho Khang, P16,800, for which a 15-day, 12% note was given. |
| 16-Sep | Collected the account of Bee Hun in full. |
| 20-Sep | Sold merchandise to Min Park, P28,000, receiving 20% downpayment and a 20-day, 9% promissory note for the balance. |
| 25-Sep | Sold merchandise to Suk Lee; term: 10%trade discount on the list price of P30,000; n/30. |
| 29-Sep | Borrowed P50,000 from MayBank by discounting own 60-day, 12% note. |
| 30-Sep | Paid the note issued to Sho Khang. |
| 30-Sep | Received notification from the bank that Seo Park settled and honored his promissory note. |
Step by step
Solved in 2 steps
