Prepare Journal Entries in a Revenue Journal Shannon Consulting Company had the following transactions during the month of October: Oct. 2. Issued Invoice No. 321 to Pryor Corp. for services rendered on account, $210. 3. Issued Invoice No. 322 to Armor Inc. for services rendered on account, $300. 14. Issued Invoice No. 323 to Pryor Corp. for services rendered on account, $110. 24. Issued Invoice No. 324 to Rose Co. for services rendered on account, $440. 29. Collected Invoice No. 321 from Pryor Corp. a. Record the October revenue transactions for Shannon Consulting Company in the following revenue journal format: REVENUE JOURNAL Accounts Rec. Dr. DATE Invoice No. Account Debited Post. Ref. Fees Earned Cr. Oct. 2 14 24 31 b. What is the total amount posted to the accounts receivable and fees earned accounts from the revenue journal for October Accounts receivable Fees earned c. What is the October 31 balance of the Pryor Corp. customer account assuming a zero balance on October 1?
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.
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