On January 1, 2025, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $90,784 cash. The new company, Metlock Sales and Service, has the following transactions during January. 1. 2. 3. 4. 5. (a) Pays $12,000 in advance for 3 months' rent of office, showroom, and repair space. Purchases 45 personal computers at a cost of $1,636 each, 11 graphics computers at a cost of $2,636 each, and 30 printers at a cost of $436 each, paying cash upon delivery. Sales, repair, and office employees earn $13,384 in salaries and wages during January, of which $3,784 was still payable at the end of January. Sells 35 personal computers at $2,686 each, 9 graphics computers for $3,736 each, and 20 printers for $636 each; $75,784 is received in cash in January, and $64,570 is sold on a deferred payment basis. Other operating expenses of $9,184 are incurred and paid for during January: $2,784 of incurred expenses are payable at January 31. Using the transaction data above, prepare (1) a cash-basis income statement and (2) an accrual-basis income statement for the month of January. (Enter loss using either a negative sign preceding the number, e.g. -45 or parentheses e.g. (45).) METLOCK SALES AND SERVICE Income Statement > < < LA (1) Cash Basis (2) Accrual Basis 1 |||
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.
Please do not give solution in image format thanku
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
