Prepare the journal entries to record the following transactions on Wildhorse Co.’s books using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (a) On March 2, Wildhorse Co. sold $947,600 of merchandise to Sandhill Co., terms 3/10, n/30. The cost of the merchandise sold was $534,200. (b) On March 6, Sandhill Co. returned $105,700 of the merchandise purchased on March 2. The cost of the merchandise returned was $68,600. (c) On March 12, Wildhorse Co. received the balanc
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 the journal entries to record the following transactions on Wildhorse Co.’s books using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
| (a) | On March 2, Wildhorse Co. sold $947,600 of merchandise to Sandhill Co., terms 3/10, n/30. The cost of the merchandise sold was $534,200. | |
| (b) | On March 6, Sandhill Co. returned $105,700 of the merchandise purchased on March 2. The cost of the merchandise returned was $68,600. | |
| (c) | On March 12, Wildhorse Co. received the balance due from Sandhill Co.. |
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No.
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Date
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Account Titles and Explanation
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Debit
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Credit
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|---|---|---|---|---|
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(a)
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choose a transaction date
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enter an account title to record sale of merchandise
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enter a debit amount
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enter a credit amount
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enter an account title to record sale of merchandise
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enter a debit amount
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enter a credit amount
|
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(To record sale of merchandise)
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||||
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choose a transaction date
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
|
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enter an account title
|
enter a debit amount
|
enter a credit amount
|
||
|
(b)
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choose a transaction date
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enter an account title to record return of merchandise
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enter a debit amount
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enter a credit amount
|
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enter an account title to record return of merchandise
|
enter a debit amount
|
enter a credit amount
|
||
|
(To record return of merchandise)
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||||
|
choose a transaction date
|
enter an account title
|
enter a debit amount
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enter a credit amount
|
|
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enter an account title
|
enter a debit amount
|
enter a credit amount
|
||
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(c)
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March 12
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enter an account title for the
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enter a debit amount for the journal entry on March 12
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enter a credit amount for the journal entry on March 12
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enter an account title for the journal entry on March 12
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enter a debit amount for the journal entry on March 12
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enter a credit amount for the journal entry on March 12
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||
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enter an account title for the journal entry on March 12
|
enter a debit amount for the journal entry on March 12
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enter a credit amount for the journal entry on March 12
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