ot been Requirements: 1. Journalize every transaction in the General Journal 2. Post every general journal in the General Ledger 3. Prepare a trial balance out of LAYTEY DRAGERN, a tax consultant, began bis practice on December 2019. The transactions of the firm are as follows: alance December Mr. Dragern invested P150,000 in the firm. Paid rent for December to Marooney Devila's Realty P8,000. Purchased supplies on account, P7,200. 1. 2. 4. Acquired P/5,000 of office equipment from BibiKow Co, paying P37,000 down with the balance due in 20days. 5. Paid P7,200 on account for supplies purchased. Paid the salaries for two weeks, P6,000 3. 6. 7. Performed consulting services to Dazzling Blowey for cash, P20,000. 8. Paid the salaries for two weeks, P6,000. 9. Performed consulting services to Gremma Repeh on account, P35,000. 10. Received and paid the telephone bills, P1,500. 11. Purchased supplies on account, P8,600. 12. Paid the accounts from BibiKow Co, P25,000. 13. Mr. Dragern withdrew P12,000 from the business for his personal use. 14. Received payment from a loyal client, Dongie for sevices rendered, P24,000. 15. Bought a photocopier machine for P54,000, paying P14,000 and a note was issued for the balance. CHART OF ACCOUNTS Salaries Expense Rent Expense Gas and Oil Expense Supplies Expense ce Cash Accounts Receivable Office Supplies Office Equipment Accounts Payable Notes Payable Dragon, Capital Dragon, Drawings Utilities Expense Miscellaneous Expense 35
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.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
