On February 11, 20Y9, Quick Fix Company purchased $2,000 of supplies on account. In Quick Fix's chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21. a. Journalize and insert the posting reference for the February 11, 20Y9, transaction on page 73 of Quick Fix Company's two-column journal. If an amount box does not require an entry, leave it blank. Page: 73 DATE 1 2/11/20Y9 2 ACCOUNT TITLE Account : Supplies DATE ITEM 2/1/20Y9 Balance 2/11/20Y9 b. & d. Enter a debit balance of $960 as of February 1, 20Y9. Place a check mark (✓) in the Posting Reference column. Post and insert the posting reference for the February 11, 20Y9, transaction to the account. If an amount box does not require an entry, leave it blank. GENERAL LEDGER Account Accounts Payable DATE ITEM 2/1/20Y9 Balance 2/11/20Y9 POST. REF. 0 POST. REF. POST. REF. DEBIT CREDIT 388 0 c. & d. Enter a credit balance of $14,240 as of February 1, 20Y9. Place a check mark (✔) in the Posting Reference column. Post and insert the posting reference for the February 11, 20Y9, transaction to the account. If an amount box does not require an entry, leave it blank. GENERAL LEDGER DEBIT CREDIT 1 DEBIT CREDIT 2 e. Do the rules of debit and credit apply to all companies? Account No. 15 BALANCE DEBIT CREDIT Account No. 21 BALANCE DEBIT CREDIT
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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