Post to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Using the balances from the spreadsheet, prepare an unadjusted trial balance of the ledger as of August 31, 20Y8. List all accounts in the order of Assets, Liabilities, Stockholders’ equity, Revenues, and Expenses. If an amount box does not require an entry, leave it blank. The following business transactions were completed by Valley Realty during August 20Y8: Aug. 1. Purchased office supplies on account, $1,010. 2. Paid rent on office for month, $3,880. 3. Received cash from clients on account, $19,380. 5. Paid insurance premiums, $2,790. 9. Returned a portion of the office supplies purchased on August 1, receiving full credit for their cost, $160. 17. Paid advertising expense, $1,550. 23. Paid creditors on account, $3,490. 29. Paid miscellaneous expense, $350. 30. Paid automobile expense (including rental charges for an automobile), $1,160. 31. Discovered an error in computing a commission during July; received cash from the salesperson for the overpayment, $780. 31. Paid salaries and commissions for the month, $6,520. 31. Recorded revenue earned and billed to clients during the month, $23,260. 31. Purchased land for a future building site for $69,800, paying $7,700 in cash and giving a note payable for the remainder. 31. Paid dividends, $780. 31. Rented land purchased on August 31 to a local university for use as a parking lot during football season (September, October, and November); received advance payment of $2,330.
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.
3. Post to the ledger, extending the account balance to the appropriate balance column after each posting.
4. Using the balances from the spreadsheet, prepare an unadjusted
List all accounts in the order of Assets, Liabilities,
The following business transactions were completed by Valley Realty during August 20Y8:
| Aug. 1. | Purchased office supplies on account, $1,010. |
| 2. | Paid rent on office for month, $3,880. |
| 3. | Received cash from clients on account, $19,380. |
| 5. | Paid insurance premiums, $2,790. |
| 9. | Returned a portion of the office supplies purchased on August 1, receiving full credit for their cost, $160. |
| 17. | Paid advertising expense, $1,550. |
| 23. | Paid creditors on account, $3,490. |
| 29. | Paid miscellaneous expense, $350. |
| 30. | Paid automobile expense (including rental charges for an automobile), $1,160. |
| 31. | Discovered an error in computing a commission during July; received cash from the salesperson for the overpayment, $780. |
| 31. | Paid salaries and commissions for the month, $6,520. |
| 31. | Recorded revenue earned and billed to clients during the month, $23,260. |
| 31. | Purchased land for a future building site for $69,800, paying $7,700 in cash and giving a note payable for the remainder. |
| 31. | Paid dividends, $780. |
| 31. | Rented land purchased on August 31 to a local university for use as a parking lot during football season (September, October, and November); received advance payment of $2,330. |
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