On October 01 2021, Glna Jose opened Self-Service Laundry. During October, the following transactions were completed; use the following account title Cash Accounts Payable Supplies Expense Accounts Receivable Jose, Capital Rent Expense Prepaid Insurance Jose, Withdrawals Utilities Expense Equipment Laundry Revenues Miscellaneous Expense Furniture and Fixture Salaries Expense Oct. 01- G. Jose Deposited 250,000 in a bank account in the name of the business. 02- Bought chairs and table paying cash 6,700 03- Bought Laundry supplies on account, from Subic Supply Inc., 3,250 06- Paid Rent for the month, 5,750 09- Bought washing machines and dryers from Bulacan Equipment Corp. 115,000 paying 35,000 in cash and the balance on account. 12- Revenues eamed on cash basis for the first half of the month, 19,250 13- Bought insurance for one year-5,600 14-Paid accounts to Bulacan Equipment Corp. -7,000 16- Received and paid electric bill, 2,800 17- Revenues earned on cash basis for the second half of the month, 12,350 18-Paid salaries on the part time assistant, 7,400 Requirements: 1. Journalize the glven business transactions 2. Prepare the T-accounts 3. Prepare Trial Balance
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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