PERFORMANCE TASK The accounts and transactions of Evelyn Jia, Systems Consultant, are shown below: a. Invested P150,000 in cash to start the business. b. Paid P7,500 for one month's rent. c. Bought office furniture for P26,000 in cash. d. Performed services for P10,500 in cash. e. Performed services for P12,750 on credit. 1. Bought a desktop computer for P55,000; paid 50% down, balance payable in 30 days. g. Acquired a personal copier for P39,500 on credit; paid P9,500 cash, balance due in 30 days. h. Received P7,000 from credit clients. i. Bought additional office chairs for P8,000 on credit. j. Issued a check for P32,500 to pay for salaries. k. Performed services for P10,250 in cash. I. Performed services for P11,500 on credit. m. Collected P6,000 on accounts receivable. n. Issued a check for P4,000 in partial payment of the amount owed for office chairs. o. Paid P2,250 for the monthly telephone bill. p. Paid P2,500 for the monthly electric bill. q. Tda withdrew P10,000 in cash for personal expenses. Required: 1. With the aid of T-Accounts, record the transactions listed above. Use the following accounts: Cash; Accounts Receivable; Office Furniture; Office Equipment; Accounts Payable; Tria, Capital; Tria Withdrawals; Consulting Revenues; Salaries Expense; Rent Expense; Utilities Expense and Miscellaneous Expense. 2. Determine the balances of the T-accounts.
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.
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