Parrish 2-4 Using an Asset, Liability and Stockholders Equity please place the following transactions in the above columns with the amount of the transactions below and in the columns indicate if the transaction would be a Debit or Credit in the appropriate column(s) 1) Tracy Evans wrote a check out of her personal account to Tracy's T-Shirts for $3000 to being the business 2) Tracy's T-Shirts bought a computer. The company paid $400 down and agreed to pay the remaing $1000 balance in 30 days 3) Tracy's T-shirts bought equipment for $2000 cash 4) Tracy's T-shirts obtained a bank loan for $5000. The company must repay the loan plus 5% interest for six months 5) Tracy's T-shirts bought t-shirts for $1000 and agreed to pay the balance in 30 days 6) Tracy's T-shirts bought supplies for $300 cash 7) Tracy's T-Shirts sold shirts to walk in customers for $500 cash 8) Tracy's T-shirts recieved its first big order. Kwane Jackson ordered $1200 worth of shirts for his company's employees. Jackson paid $400 when he picked up the shirts and will pay the remaining $800 in 30 days 9) Tracy's T-Shirts paid rent of $700 10) Tracy's T-Shirts paid a phone bill of $200 11) Tracy's T-shirts paid employees $500 12) Tracy's T-Shirts had an unpaikd electric bill at month-end for $100 13) Calculate the total for assets, liabilities, and equity 14_ Calculate the net income and enter the amount in the equity column
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.
Parrish 2-4
Using an Asset, Liability and
1) Tracy Evans wrote a check out of her personal account to Tracy's T-Shirts for $3000 to being the business
2) Tracy's T-Shirts bought a computer. The company paid $400 down and agreed to pay the remaing $1000 balance in 30 days
3) Tracy's T-shirts bought equipment for $2000 cash
4) Tracy's T-shirts obtained a bank loan for $5000. The company must repay the loan plus 5% interest for six months
5) Tracy's T-shirts bought t-shirts for $1000 and agreed to pay the balance in 30 days
6) Tracy's T-shirts bought supplies for $300 cash
7) Tracy's T-Shirts sold shirts to walk in customers for $500 cash
8) Tracy's T-shirts recieved its first big order. Kwane Jackson ordered $1200 worth of shirts for his company's employees. Jackson paid $400 when he picked up the shirts and will pay the remaining $800 in 30 days
9) Tracy's T-Shirts paid rent of $700
10) Tracy's T-Shirts paid a phone bill of $200
11) Tracy's T-shirts paid employees $500
12) Tracy's T-Shirts had an unpaikd electric bill at month-end for $100
13) Calculate the total for assets, liabilities, and equity
14_ Calculate the net income and enter the amount in the equity column
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