Parrish 3-4 COMPLETING POSTING FOR CHART OF ACCOUNTS Would you please show a complete and accurate posting of the following transactions. Thank you! 2/1 Elena Martin starts her business by depositing $5000 of her own money into her business checking 2/2 Elena pays one month’s rent for her Salon for $200 cash2/5 Elena buys supplies for $500 cash2/7 Elena buys equipment for cash2/10 Elena has her first customers and they pay her $300 for nail services2/11 Elena pays $50 cash for a shipment of supplies plus a $10 shipping fees Chart of AccountsCash in the Bank #120Supplies #130Equipment #140E. Martin, Capital #310Service Fee Revenue #510Shipping Expense $515
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 3-4 COMPLETING POSTING FOR CHART OF ACCOUNTS
Would you please show a complete and accurate posting of the following transactions. Thank you!
2/1 Elena Martin starts her business by depositing $5000 of her own money into her business checking
2/2 Elena pays one month’s rent for her Salon for $200 cash
2/5 Elena buys supplies for $500 cash
2/7 Elena buys equipment for cash
2/10 Elena has her first customers and they pay her $300 for nail services
2/11 Elena pays $50 cash for a shipment of supplies plus a $10 shipping fees
Chart of Accounts
Cash in the Bank #120
Supplies #130
Equipment #140
E. Martin, Capital #310
Service Fee Revenue #510
Shipping Expense $515
As the amount for the purchase of equipment is not given in the question, it was left as a blank in the solution. in case you have the amount of equipment please enter the amount in the credit column, opposite the equipment and also in the equipment ledger debit side.
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