Patterson Appliance uses a three-column purchases journal. The company is located in Fresno, California. In addition to a general ledger, Patterson Appliance also uses an accounts payable ledger. Transactions for January related to the purchase of merchandise are as follows: Jan. 2 Bought eighty 12-inch, 3-speed Brighton Oscillating Fans from Snyder and Jordan, $1,890, invoice no. 268J, dated January 2: terms net 60 days; FOB Fresno. Jan. 4 Bought ten 35-pint-capacity Crystal Humidifiers from Simpson Company, $2,300, invoice no. 39426, dated January 2; terms 2/10, n/30; FOB Durango, freight prepaid and added to the invoice, $90 (total $2,390). Jan. 7 Bought ten 16-inch Axel Window Fans from Tran, Inc., $360, invoice no. 452AD, dated January 6; terms 1/10, n/30; FOB Fresno. Jan. 10 Bought twenty-four 4-blade Tiempo Ceiling Fans, Model 2760, from Ukele Company, $3,550, invoice no. D7742, dated January 7; terms 2/10, n/30; FOB Sacramento, freight prepaid and added to the invoice, $84 (total $3,634). Jan. 14 Bought four Charger Electric Hedge Trimmers from Fernandez Products Company, $186, invoice no. 2542, dated January 13; terms net 30 days; FOB Fresno. Jan. 22 Bought 40 Lindon Electric Bug Killers from Synder and Jordan, $2,265, invoice no. 392J, dated January 22; terms net 60 days; FOB Fresno. Jan. 28 Bought ten Charger Electric Blowers from Fernandez Products Company, $830, invoice no. 2691, dated January 27; terms net 30 days; FOB Fresno. Jan. 30 Bought ten Kole Powered Attic Ventilators from Porter Company, $446, invoice no. 664CC, dated January 27; terms 2/10, n/30; FOB Seattle, freight prepaid and added to the invoice, $48 (total $494). Required: 4. Post to the accounts payable ledger daily. 5. Post to the general ledger at the end of the month. 6. Prepare a schedule of accounts payable and compare the balance of the Accounts Payable controlling account with the total of the schedule of accounts payable.
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.
Patterson Appliance uses a three-column purchases journal. The company is located in Fresno, California. In addition to a general ledger, Patterson Appliance also uses an accounts payable ledger. Transactions for January related to the purchase of merchandise are as follows:
Jan. 2 Bought eighty 12-inch, 3-speed Brighton Oscillating Fans from Snyder and Jordan, $1,890, invoice no. 268J, dated January 2: terms net 60 days; FOB Fresno.
Jan. 4 Bought ten 35-pint-capacity Crystal Humidifiers from Simpson Company, $2,300, invoice no. 39426, dated January 2; terms 2/10, n/30; FOB Durango, freight prepaid and added to the invoice, $90 (total $2,390).
Jan. 7 Bought ten 16-inch Axel Window Fans from Tran, Inc., $360, invoice no. 452AD, dated January 6; terms 1/10, n/30; FOB Fresno.
Jan. 10 Bought twenty-four 4-blade Tiempo Ceiling Fans, Model 2760, from Ukele Company, $3,550, invoice no. D7742, dated January 7; terms 2/10, n/30; FOB Sacramento, freight prepaid and added to the invoice, $84 (total $3,634).
Jan. 14 Bought four Charger Electric Hedge Trimmers from Fernandez Products Company, $186, invoice no. 2542, dated January 13; terms net 30 days; FOB Fresno.
Jan. 22 Bought 40 Lindon Electric Bug Killers from Synder and Jordan, $2,265, invoice no. 392J, dated January 22; terms net 60 days; FOB Fresno.
Jan. 28 Bought ten Charger Electric Blowers from Fernandez Products Company, $830, invoice no. 2691, dated January 27; terms net 30 days; FOB Fresno.
Jan. 30 Bought ten Kole Powered Attic Ventilators from Porter Company, $446, invoice no. 664CC, dated January 27; terms 2/10, n/30; FOB Seattle, freight prepaid and added to the invoice, $48 (total $494).
Required:
4. Post to the accounts payable ledger daily.
5. Post to the general ledger at the end of the month.
6. Prepare a schedule of accounts payable and compare the balance of the Accounts Payable controlling account with the total of the schedule of accounts payable.
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