On January 1, Merry Walker established a catering service. Listed below are accounts to use for transactions (a) through (f), each identified by a number. Following this list are the transactions that occurred in Walker’s first month of operations. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box. 1. Cash 2. Accounts Receivable 3. Supplies 4. Prepaid Insurance 5. Equipment 6. Truck 7. Notes Payable 8. Accounts Payable 9. Merry Walker, Capital 10. Merry Walker, Drawing 11. Fees Earned 12. Wages Expense 13. Rent Expense 14. Utilities Expense 15. Truck Expense 16. Miscellaneous Expense 17. Insurance Expense Transactions Account(s) Debited Account(s) Credited a. Recorded jobs completed on account and sent invoices to customers. b. Received an invoice for truck expenses to be paid in February. c. Paid utilities expense d. Received cash from customers on account. e. Paid employee wages. f. Withdrew cash for personal use.
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.
On January 1, Merry Walker established a catering service. Listed below are accounts to use for transactions (a) through (f), each identified by a number. Following this list are the transactions that occurred in Walker’s first month of operations. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box.
| 1. | Cash |
| 2. | |
| 3. | Supplies |
| 4. | Prepaid Insurance |
| 5. | Equipment |
| 6. | Truck |
| 7. | Notes Payable |
| 8. | Accounts Payable |
| 9. | Merry Walker, Capital |
| 10. | Merry Walker, Drawing |
| 11. | Fees Earned |
| 12. | Wages Expense |
| 13. | Rent Expense |
| 14. | Utilities Expense |
| 15. | Truck Expense |
| 16. | Miscellaneous Expense |
| 17. | Insurance Expense |
| Transactions | Account(s) Debited | Account(s) Credited |
| a. Recorded jobs completed on account and sent invoices to customers. | ||
| b. Received an invoice for truck expenses to be paid in February. | ||
| c. Paid utilities expense | ||
| d. Received cash from customers on account. | ||
| e. Paid employee wages. | ||
| f. Withdrew cash for personal use. |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
