Please do general Journal at the attached excel image. a. Dec.1 Jack Simmons, the owner contributed a $500,000 check from his personal account, which he deposited into an account opened in the name of the business, to start the business. b. Dec.1 He rented space that had previously been used by a shoe store and wrote check no. 100 for $9,000 for the first six month’s rent. c. Dec.2 He paid for installation and phone usage $300 (check no. 101) d. Dec.2 He paid for advertising in the local paper $150 (check no. 102). The ads will all run in December. e. Dec.2 He purchased $500 of office supplies (check no. 103) f. Dec.3 He paid $300 for insurance for three months (December 2018, January and February 2019 using check no, 104). g. Dec.4 He purchased 800 pairs of sneakers at $40 a pair– on account from Nike (using purchase order no. 301). Payment terms were 2/10, net 30. Assume the shoe store uses the perpetual inventory system. h. Dec.5 He purchased 500 pairs of dress shoes from Footwear Corp. on account for $20 a pair (using purchase order no. 302). Payment terms were 2/10, net 30 i. Dec.10 He made a sale on account of 20 pairs of sneakers at $100 a pair, to a local University – Highland University (sales invoice number 2000) for their basketball team. Payment terms were 2/10 net 30. j. Dec.11 He made a sale on account of 2 pairs of dress shoes at $50 a pair (sales invoice no. 2001) to a local charity, U.S. Veterans, that intended to raffle them off at one of their events. k. Dec.12 He made a sale on account to The Jenson Group of 300 pairs of dress shoes at $50 a pair, to use as part of an employee uniform. Payment terms were 2/10 net 30. l. Dec.14 He made a cash sale for 2 sneakers at $120 each and 1 pair of shoes for $60. m. Dec.14 He paid the amount owed to Footwear Corp (check no 105) n. Dec.17 Highland University returned 2 pairs of sneakers they had previously purchased on account. o. Dec.18 He received a check from Highland University in full payment of their balance. p. Dec.20 He made a cash sale to Charles Wilson of three pairs of sneakers at $120 each and 1 pair of dress shoes at $60. q. Dec.20 He made a partial payment to Nike for $20,000 (check number 106) r. Dec.23 Received a $400 utility bill which will be paid in January. s. Dec.27 Received a check from The Jenson Group in the amount of $9,000. t. Dec.28 He paid $2,000 of his balance to Nike (check number 107)
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.
Please do general Journal at the attached excel image.
a. Dec.1 Jack Simmons, the owner contributed a $500,000 check from his personal account, which he deposited into an account opened in the name of the business, to start the business.
b. Dec.1 He rented space that had previously been used by a shoe store and wrote check no. 100 for $9,000 for the first six month’s rent.
c. Dec.2 He paid for installation and phone usage $300 (check no. 101)
d. Dec.2 He paid for advertising in the local paper $150 (check no. 102). The ads will all run in December.
e. Dec.2 He purchased $500 of office supplies (check no. 103)
f. Dec.3 He paid $300 for insurance for three months (December 2018, January and February 2019 using check no, 104).
g. Dec.4 He purchased 800 pairs of sneakers at $40 a pair– on account from Nike (using purchase order no. 301). Payment terms were 2/10, net 30. Assume the shoe store uses the perpetual inventory system.
h. Dec.5 He purchased 500 pairs of dress shoes from Footwear Corp. on account for $20 a pair (using purchase order no. 302). Payment terms were 2/10, net 30
i. Dec.10 He made a sale on account of 20 pairs of sneakers at $100 a pair, to a local University – Highland University (sales invoice number 2000) for their basketball team. Payment terms were 2/10 net 30.
j. Dec.11 He made a sale on account of 2 pairs of dress shoes at $50 a pair (sales invoice no. 2001) to a local charity, U.S. Veterans, that intended to raffle them off at one of their events.
k. Dec.12 He made a sale on account to The Jenson Group of 300 pairs of dress shoes at $50 a pair, to use as part of an employee uniform. Payment terms were 2/10 net 30.
l. Dec.14 He made a cash sale for 2 sneakers at $120 each and 1 pair of shoes for $60.
m. Dec.14 He paid the amount owed to Footwear Corp (check no 105)
n. Dec.17 Highland University returned 2 pairs of sneakers they had previously purchased on account.
o. Dec.18 He received a check from Highland University in full payment of their balance.
p. Dec.20 He made a cash sale to Charles Wilson of three pairs of sneakers at $120 each and 1 pair of dress shoes at $60.
q. Dec.20 He made a partial payment to Nike for $20,000 (check number 106)
r. Dec.23 Received a $400 utility bill which will be paid in January.
s. Dec.27 Received a check from The Jenson Group in the amount of $9,000.
t. Dec.28 He paid $2,000 of his balance to Nike (check number 107)
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