Pass the journal entries for transactions given Prepare the various t-account Prepare the trial balance Explain the uses of journal and ledger accounts. Date Transaction April 1: Commenced business with $35,000 of common stock for cash $35,000 April 2 Purchased Office supply for $ 1,100 on account April 5 Billed customers $ 10,000 on the account. April 12 Purchased a delivery van for $ 7,000 on loan. April15 Paid rent for $ 5,000. April 16 Paid Salaries to employees $4,000 April 17 Cash sales for $ 2,000 April 20 Paid insurance for one-year policy $1,800. April 20 Paid the loan on van $1,000 April 21 Collected $ 9,000 for the bill on April 5. April 25 Return office supply purchased on April 2 $ 100 April 27 Purchased additional furniture by paying cash for $ 2,000. April 29 Cash withdrawal for personal use $ 1,000 Additional entries: (a) Depreciation for the month of April on van 5% (b) Accrued but unpaid employee salaries were $500 (c) Earned but unbilled fees at October 31 were $600 (d) One-twelfth of the insurance expired (e) Paid Dividend $,1000
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.
- Pass the
journal entries for transactions given - Prepare the various t-account
- Prepare the
trial balance - Explain the uses of journal and ledger accounts.
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Date
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Transaction
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April 1:
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Commenced business with $35,000 of common stock for cash $35,000
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April 2
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Purchased Office supply for $ 1,100 on account
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April 5
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Billed customers $ 10,000 on the account.
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April 12
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Purchased a delivery van for $ 7,000 on loan.
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April15
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Paid rent for $ 5,000.
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April 16
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Paid Salaries to employees $4,000
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April 17
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Cash sales for $ 2,000
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April 20
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Paid insurance for one-year policy $1,800.
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April 20
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Paid the loan on van $1,000
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April 21
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Collected $ 9,000 for the bill on April 5.
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April 25
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Return office supply purchased on April 2 $ 100
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April 27
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Purchased additional furniture by paying cash for $ 2,000.
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April 29
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Cash withdrawal for personal use $ 1,000
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Additional entries:
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(a)
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(b)
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Accrued but unpaid employee salaries were $500
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(c)
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Earned but unbilled fees at October 31 were $600
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(d)
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One-twelfth of the insurance expired
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(e)
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Paid Dividend $,1000
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