On January 2, Handley Ltd. sold merchandise on account to R. Richard for $51,000, terms n/30. The company uses a perpetual inventory system and the merchandise originally cost $34,400. On February 1, R. Richard gave Handley a five-month, 6% note in settlement of this account. Interest is due at the beginning of each month, starting March 1. On April 30, Handley's year end, annual adjusting entries were made. On July 1, R. Richard paid the note and any remaining interest. Prepare the journal entries for Handley to record the transactions only on the dates listed above. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation (To record sales) (To record cost of merchandise sold) 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.
Hello,
I'm unsure how to do en entries for this question
JOURNAL ENTRIES
Journal Entries is the Process of Recording all Financial and Non Financial Transaction in a Proper Format.
Journal Entry is Used to Record a Business Transaction in the Accounting Record of a Business.
Golden rule of Journal Entry :—
- Debit the Receiver & Credit the Giver.
- Debit what Comes in & Credit what Goes Out.
- Debit all Expenses & Loss & Credit all Income & Gain.
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