Prepare General ledger: April 1. Mr. Allan Lledo, the owner started the asg wholesale and retail inc by investing P150,000 April 2. Purchase merchandise on account from MJ wholesale supply P65,000 terms 2/10, n/30 FOB Destination. April 4. Purchase office equipment for cash P25,000 April 4. Purchase supplies for cash P5,500 April 5. Sold merchandise for cash P31,500 April 6. Sold P24,000 worth of goods to Don Sales Inc. 2/10, n/30 FOB Destination. April 7. Received P1,500 credit from MJ wholesale supply for the return of unsatisfactory goods. April 8. Paid P600 for the delivery of goods to Don Sales inc. April 9. Purchase merchandise on cash P50,000 April 10. Made a full payment to MJ wholesale supply. April 11. Made a sale to NA travels for P38,800 with credit term 2/10, n/30 FOB Destination April 12. Purchase merchandise on account from Care Enterprises P55,000 terms 2/10, n/30 FOB Shipping point April 13. Paid freight for the purchase of merchandise P1,200 April 14. Purchase merchandise on cash P15,000 April 15. Paid salaries of P6,500 April 16. Received payment from Don Sales Inc. April 17. Received refund for poor quality merchandise from purchased April 14, P800. April 18. A. Lledo withdraw cash from the business P24,000 April 18. Sold merchandise on account to vinz, P43,500 April 19. Sold merchandise for cash P40,500 April 20. Purchase merchandise on account from Dave Wholesale Inc. P45,000 terms 2/10, n/30 FOB Shipping point. April 21. Issued a credit for P1,500 to NA Travels for the return of unsatisfactory goods. April 22. Received payment from NA Travels April 23. Made a refund to cash customer for defective merchandise P2,500 April 24. Sold merchandise for cash, P45,500 April 24. Made partial payment to care enterprise P27,500. No discount for partial payment made. April 25. The business made a loan at Rural Bank and issued promissory note in amount of P50,000 April 26. Purchase merchandise on cash, P95,000 April 27. Sold merchandise for cash, P25,500 April 28. Sold merchandise on account to Gabby Wholesale, P12,500 April 29. Made a full payment to Dave Wholesale Inc. April 30. Paid the following operating expenses for the month: Salaries P6,500 ; Rent P7,000 ; utilities P2,500 ; Advertising P1,000 April 30, 2018 ending inventory P154,000
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.
April 1. Mr. Allan Lledo, the owner started the asg wholesale and retail inc by investing P150,000
April 2. Purchase merchandise on account from MJ wholesale supply P65,000 terms 2/10, n/30 FOB Destination.
April 4. Purchase office equipment for cash P25,000
April 4. Purchase supplies for cash P5,500
April 5. Sold merchandise for cash P31,500
April 6. Sold P24,000 worth of goods to Don Sales Inc. 2/10, n/30 FOB Destination.
April 7. Received P1,500 credit from MJ wholesale supply for the return of unsatisfactory goods.
April 8. Paid P600 for the delivery of goods to Don Sales inc.
April 9. Purchase merchandise on cash P50,000
April 10. Made a full payment to MJ wholesale supply.
April 11. Made a sale to NA travels for P38,800 with credit term 2/10, n/30 FOB Destination
April 12. Purchase merchandise on account from Care Enterprises P55,000 terms 2/10, n/30 FOB Shipping point
April 13. Paid freight for the purchase of merchandise P1,200
April 14. Purchase merchandise on cash P15,000
April 15. Paid salaries of P6,500
April 16. Received payment from Don Sales Inc.
April 17. Received refund for poor quality merchandise from purchased April 14, P800.
April 18. A. Lledo withdraw cash from the business P24,000
April 18. Sold merchandise on account to vinz, P43,500
April 19. Sold merchandise for cash P40,500
April 20. Purchase merchandise on account from Dave Wholesale Inc. P45,000 terms 2/10, n/30 FOB Shipping point.
April 21. Issued a credit for P1,500 to NA Travels for the return of unsatisfactory goods.
April 22. Received payment from NA Travels
April 23. Made a refund to cash customer for defective merchandise P2,500
April 24. Sold merchandise for cash, P45,500
April 24. Made partial payment to care enterprise P27,500. No discount for partial payment made.
April 25. The business made a loan at Rural Bank and issued promissory note in amount of P50,000
April 26. Purchase merchandise on cash, P95,000
April 27. Sold merchandise for cash, P25,500
April 28. Sold merchandise on account to Gabby Wholesale, P12,500
April 29. Made a full payment to Dave Wholesale Inc.
April 30. Paid the following operating expenses for the month: Salaries P6,500 ; Rent P7,000 ; utilities P2,500 ; Advertising P1,000
April 30, 2018 ending inventory P154,000
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