Prepare General Journal entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places.)
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.
Following are transactions of Leduc Company:
2020
Dec. 11 Accepted a $22,000, 6%, 60-day note dated this day in granting Fred Calhoun a time extension on his past-due account.
Dec. 31 Made an
Dec. 31 Closed the Interest income account. 2018 Jan. 10 Discounted the Fred Calhoun note at the bank at 7%.
Feb. 10 The Fred Calhoun note was dishonored. Paid the bank the maturity value of the note plus a $30 fee.
Mar. 5 Accepted a $11,500, 5.5%, 60-day note dated this day in granting a time extension on the past-due account of Donna Reed.
Mar. 29 Discounted the Donna Reed note at the bank at 7.5%.
May 7 The Donna Reed note had been received by the bank and paid by Donna Reed.
June 9 Accepted a $13,750, 60-day, 5% note dated this day in granting a time extension on the past-due account of Jack Miller.
Aug. 8 Received payment of the maturity value of the Jack Miller note.
Aug. 8 11 Accepted an $15,000, 60-day, 5% note dated this day in granting Roger Addison a time extension on his past-due account.
Aug. 31 Discounted the Roger Addison note at the bank at 6.5%.
Oct.12 The Roger Addison note was dishonored. Paid the bank the maturity value of the note plus a $30 fee.
Nov.19 Received payment from Roger Addison of the maturity value of his dishonored note, the fee, and interest on both for 40 days beyond maturity at 5%.
Dec. 23 Wrote off the Fred Calhoun account against Allowance for Doubtful Accounts. Required: Prepare General Journal entries to record the above transactions. (If no entry is required for a transaction/event, select "No
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