-Prepare an income statement, a statement of owner´s equity and a balance sheet. -Journalize and post the adjusting entries. Using the following information: Date June General Journal Debit ($) Credit ($) 1. Cash 6,000 Accounts receivable 1,000 Supplies 1,250 Service equipment 6,200 Harry William’s Capital 14,450 2. Prepaid rent 2,400 Cash 2,400 2. Prepaid insurance 1,800 Cash 1,800 4. Service equipment 2,000 Accounts payable 2,000 6. Cash 600 Accounts receivable 600 9. Miscellaneous expense 80 Cash 80 11. Accounts payable 1,100 Cash 1,100 12. Accounts receivable 1,200 Service revenue 1,200 13. Salaries expense 400 Cash 400 17. Cash 2,100 Service revenue 2,100 17. Supplies 950 Cash 950 20. Accounts receivable 1,100 Service revenue 1,100 24. Cash 1,850 Service revenue 1,850 27. Cash 1,200 Accounts receivable 1,200 27. Salaries expense 400 Cash 400 30. Miscellaneous expense 65 Cash 65 30. Miscellaneous expense 140 Cash 140 30. Cash 850 Service revenue 850 30. Accounts receivable 500 Service revenue 500 30. Harry William’s Withdrawals 1,200 Cash 1,200 Adjusting Entries: Date June General Journal Debit ($) Credit ($) 30 Insurance expense 250 Prepaid insurance 250 30 Supplies expense (2,200-1,420) 780 Supplies 780 30 Depreciation expense 750 Accumulated depreciation 750 30 Salaries expense 100 Salaries payable 100 30 Rent expense 800 Prepaid rent 800
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.
Instructions:
-Prepare an income statement, a statement of owner´s equity and a
-Journalize and
Using the following information:
|
Date June |
General Journal |
Debit ($) |
Credit ($) |
|
1. |
Cash |
6,000 |
|
|
|
|
1,000 |
|
|
|
Supplies |
1,250 |
|
|
|
Service equipment |
6,200 |
|
|
|
Harry William’s Capital |
|
14,450 |
|
|
|
|
|
|
2. |
Prepaid rent |
2,400 |
|
|
|
Cash |
|
2,400 |
|
|
|
|
|
|
2. |
Prepaid insurance |
1,800 |
|
|
|
Cash |
|
1,800 |
|
|
|
|
|
|
4. |
Service equipment |
2,000 |
|
|
|
Accounts payable |
|
2,000 |
|
|
|
|
|
|
6. |
Cash |
600 |
|
|
|
Accounts receivable |
|
600 |
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|
|
|
|
|
9. |
Miscellaneous expense |
80 |
|
|
|
Cash |
|
80 |
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|
|
|
|
|
11. |
Accounts payable |
1,100 |
|
|
|
Cash |
|
1,100 |
|
|
|
|
|
|
12. |
Accounts receivable |
1,200 |
|
|
|
Service revenue |
|
1,200 |
|
|
|
|
|
|
13. |
Salaries expense |
400 |
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|
|
Cash |
|
400 |
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|
|
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|
17. |
Cash |
2,100 |
|
|
|
Service revenue |
|
2,100 |
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|
|
|
|
|
17. |
Supplies |
950 |
|
|
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Cash |
|
950 |
|
|
|
|
|
|
20. |
Accounts receivable |
1,100 |
|
|
|
Service revenue |
|
1,100 |
|
|
|
|
|
|
24. |
Cash |
1,850 |
|
|
|
Service revenue |
|
1,850 |
|
|
|
|
|
|
27. |
Cash |
1,200 |
|
|
|
Accounts receivable |
|
1,200 |
|
|
|
|
|
|
27. |
Salaries expense |
400 |
|
|
|
Cash |
|
400 |
|
|
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|
30. |
Miscellaneous expense |
65 |
|
|
|
Cash |
|
65 |
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|
30. |
Miscellaneous expense |
140 |
|
|
|
Cash |
|
140 |
|
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|
|
|
|
30. |
Cash |
850 |
|
|
|
Service revenue |
|
850 |
|
|
|
|
|
|
30. |
Accounts receivable |
500 |
|
|
|
Service revenue |
|
500 |
|
|
|
|
|
|
30. |
Harry William’s Withdrawals |
1,200 |
|
|
|
Cash |
|
1,200 |
Adjusting Entries:
|
Date June |
General Journal |
Debit ($) |
Credit ($) |
|
30 |
Insurance expense |
250 |
|
|
|
Prepaid insurance |
|
250 |
|
|
|
|
|
|
30 |
Supplies expense (2,200-1,420) |
780 |
|
|
|
Supplies |
|
780 |
|
|
|
|
|
|
30 |
|
750 |
|
|
|
|
|
750 |
|
|
|
|
|
|
30 |
Salaries expense |
100 |
|
|
|
Salaries payable |
|
100 |
|
|
|
|
|
|
30 |
Rent expense |
800 |
|
|
|
Prepaid rent |
|
800 |
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