Office Supplies No. 109 Salaries Expense No, 510 Balance Balance Date Post. Ref. Debit Credit Debit Credit Date Post. Ref. Debit Credit Debit Credit Balance 1,600 Balance Aug. CP.5 740 2,340 Aug. 1,040 16 CP.5 1,040 31 P.8 250 2,590 Prepaid Insurance No. 117 Balance Depreciation Expense-Furniture No, 514 Debit Credit 2,000 Date Post. Ref. Debit Credit Balance Date Post. Ref. Debit Credit Debit Credit Balance Balance Aug. Aug. Accumulated Depreciation-Furniture No. 161 Balance Insurance Expense No, 516 Date Post. Ref. Debit Credit Debit Credit Balance Date Post. Ref. Debit Credit Debit Credit Balance 10,500 Balance Aug. Aug. Supplies Expense No, 519 Salaries Payable No. 204 Balance Balance Date Post. Ref. Debit Credit Debit Credit Date Post. Ref. Debit Credit Debit Credit Balance Aug. Balance 1,050 Aug. CP.5 1,050 General Journal Page 9 Date Accounts and Explanation Post. Ref. Debit Credit Aug. 31 Supplies Expense 1,640 Adj. (a) Office Supplies 1,640 To record office supplies used. Insurance Expense Aug. 31 650 Adj. (b) Prepaid Insurance 650 To record insurance expense. Aug. 31 Depreciation Expense-Furniture 260 Adj. (c) Accumulated Depreciation-Furniture 260 To record depreciation on furniture. Salaries Expense Aug. 31 1,080 Adj. (d) Salaries Payable 1,080 To accrue salaries expense.
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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