Prepare Accounting Equation for his bookkeeping office for the month of December 31, 2010 1 John Atienza invested 300,000 for his Bookkeeping office 2 Purchased office supplies P10000 and office equipment P100000 3 Paid 10000 for the rent of space 4 Purchased furniture and fixtures for the office, P5000 5 Paid taxes and license P10000 6 Paid AAA Channel for the advertisement of office, P3000 7 Service Income for the 1st week is amounting to P20000 8 Paid salaries to staff, P10000 9 Service Income for 2nd week, P35000 10 Purchased additional equipment for 15000 on account from XYZ Company 11 John withdraw cash from the business, P10000 12 Service Income for the 3rd week, P45000 13 Render services to ABC Company amounting to P25000 payment is not yet given 14 Salary of the staff P15000 15 Payment of utility expense, P15000 Internet fee 2000 16 Service Income for the 4th week 60,000 17 Submit some papers to BIR and consume transportation expense 2000
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.
Prepare
1 John Atienza invested 300,000 for his Bookkeeping office
2 Purchased office supplies P10000 and office equipment P100000
3 Paid 10000 for the rent of space
4 Purchased furniture and fixtures for the office, P5000
5 Paid taxes and license P10000
6 Paid AAA Channel for the advertisement of office, P3000
7 Service Income for the 1st week is amounting to P20000
8 Paid salaries to staff, P10000
9 Service Income for 2nd week, P35000
10 Purchased additional equipment for 15000 on account from XYZ Company
11 John withdraw cash from the business, P10000
12 Service Income for the 3rd week, P45000
13 Render services to ABC Company amounting to P25000 payment is not yet given
14 Salary of the staff P15000
15 Payment of utility expense, P15000 Internet fee 2000
16 Service Income for the 4th week 60,000
17 Submit some papers to BIR and consume transportation expense 2000
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