Peters Consulting completed these transactions during June 2023: June 2 Trevor Peters, the sole proprietor, invested $46,000 cash and office equipment with a $24,000 fair value in the business. June 4 Purchased land and a small office building. The land was worth $268,000 and the building was worth $66,000. The purchase price was paid with $30,000 cash and a long-term note payable for $304,000. June 8 Transferred title of his personal automobile to the business. The automobile had a value of $7,000 and was to be used exclusively in the business. June 10 Purchased $600 of office supplies on credit. June 14 Completed $2,400 of services for a client. This amount is to be paid within 30 days. June 18 Paid $1,800 salary to an assistant. June 22 Paid the account payable from the transaction on June 10. June 24 Purchased $4,000 of new office equipment by paying $2,400 cash and trading in old equipment with a recorded cost of $1,600. June 28 Received $1,000 payment on the receivable created from the transaction on June 14th. June 30 Withdrew $1,050 cash from the business for personal use. • Required For each transaction the journal entry
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.
Peters Consulting completed these transactions during June 2023:
June 2 Trevor Peters, the sole proprietor, invested $46,000 cash and office equipment with a
$24,000 fair value in the business.
June 4 Purchased land and a small office building. The land was worth $268,000 and the building
was worth $66,000. The purchase price was paid with $30,000 cash and a long-term note payable
for $304,000.
June 8 Transferred title of his personal automobile to the business. The automobile had a value of
$7,000 and was to be used exclusively in the business.
June 10 Purchased $600 of office supplies on credit.
June 14 Completed $2,400 of services for a client. This amount is to be paid within 30 days.
June 18 Paid $1,800 salary to an assistant.
June 22 Paid the account payable from the transaction on June 10.
June 24 Purchased $4,000 of new office equipment by paying $2,400 cash and trading in old
equipment with a recorded cost of $1,600.
June 28 Received $1,000 payment on the receivable created from the transaction on June 14th.
June 30 Withdrew $1,050 cash from the business for personal use.
• Required
For each transaction the
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
