ng Year 5, Pacilio Security Services experienced the following transactions: did the salaries payable from Year 4. n January 15, purchased 20 standard alarm systems for cash at a cost of $250 each, n February 1, paid the accounts payable of $980, but not within the discount period. (The company uses the gross method.) n March 1, leased a business van. Paid $4,800 for one year's lease in advance. aid $7,200 on May 1 for one year's rent on the office in advance. urchased with cash $500 of supplies to be used over the next several months by the business. urchased with cash another 25 alarm systems on August 1 for resale at a cost of $260 each. n September 5, purchased on account 30 standard alarm systems at a cost of $265. stalled 60 standard alarm systems for $33,000. Sales of $22,000 were on account, while $11,000 were cash sales. ecord the cost of goods sold related to the sale from Event 9 using the perpetual FIFO method. lade a full refund to a dissatisfied customer who returned her alarm system. The sale had been a cash sale for $550 with a cos 260. Record the reversal of revenue. lade a full refund to a dissatisfied customer who returned her alarm system. The sale had been a cash sale for $550 with a cos 260. Record the reversal of cost. aid installers and other employees a total of $21,000 cash for salaries. pld $45,000 of monitoring services during the year. The services are biled to the customers each month. nld an additional monitoring service for $1,200 for one year's service. The customer paid the full amount of $1,200 on Octobe
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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