Prepare the journal entries
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.
Camelot Bookstore Company
Summary of Transaction
May 2016
May 1 Remitted the following collections
To For Amount
BIR Withholding taxes P3,600.00
SSS Premium P5,000.00
Philhealth Contribution P1,500.00
HDMF Contribution P1,600.00
1 Jes Montes made additional investment into the business
Cash P 300,000.00
Store furniture and fixtures P 50,000.00
1 Paid business permit to Muntinlupa City treasurer P 5,435.72
1 Purchased various books from Coran Educational Supply
Terms: Cash P 104,500.00
1 Purchased various books from Coran Educational Supply
Terms: n/35 P 57,000.00
1 Paid 4 months rent to Luxor Realty, Inc.
(May1 to August 31,2016) P 40,000.00
1 Increased petty cash fund by P 1,000
2 Sold various books to University of Misamis Oriental
Terms: Cash P 106,250.00
2 Purchased office and store supplies from Hamco
Stationary Corporation, Terms: Cash P 2,000.00
2 Purchased various books from Millennium Bookstore
Terms: 3/10, n/30 P 44,000.00
3 Sold various books to University of the Orient
Terms: Cash P 25,000.00
4 Purchased various books from Cyber Bookstore
Terms: 3/10; n/30 P 22,000.00
5 Purchased various supplies from Coran Educational
Supply ; Terms: 3/10, n/30 P 95,000.00
5 Sold various books to Eastern Pampanga College
Terms: Cash P 33,000.00
7 Purchased various books from Coran Educational Supply
Terms: 3/10, n/30 P 152,500.00
8 Sold various books to Dadrangas School of Accountancy
Terms: 3/5, n/20 P 117,500.00
12 Paid Millennium Bookstore for purchases made on
May 2
( Refer to May 2 transaction for the amount purchase)
13 Sold various books to University of Easter Luzon
Terms: 3/5, n/30 P 172,500.00
13 Received payment from Dadrangas School of Accountancy for books sold on May 8
( Refer to May 8 transaction for the amount )
14 Collected the receivable outstanding on April 30,2016
from Assumption School of Business P 10,000.00
15 Paid salaries for the period of May 1-15
(Refer to Payroll attached)
15 Paid Coran Educational Supply for purchase made on
May 5
( Refer to May 5 transaction for the amount of purchase)
16 Purchased various books from Coran Educational Supply
Terms: Cash P 69,500.00
17 Paid Coran Educational Supply for purchases made on May 7
( Refer to May 7 transaction for the amount)
18 Sold various books to FV Santos Memorial Business School
Terms:Cash P 22,000.00
18 Collected from University of Eastern Luzon for books sold on May 13
(Refer to May 13 transaction for the amount )
18 Collected from Southern Institute of
outstanding receivable on April 30,2016 P 10,000.00
19 Purchased various books from Coran Educational Supply
Terms: n/30 P 32,000.00
20 Sold various books to FV Santos Memorial Business
School , Terms: Cash P 40,000.00
22 Received a debit memo from Coran Educational Supply
for allowance on damaged books bought on May 19 P 4,000.00
23 Purchased various books from Millennium Bookstore
Terms: 3/10, n/30 P 22,000.00
25 Sold various books to Northern Metro Manila School
of Business; Terms: Cash P 41,500.00
28 Issued credit memo to |Northern Metro Manila School
of Business and issued a check refund P 1,500.00
29 J Montes withdraw cash for personal use P 10,000.00
30 Collected from Eastern Philippines School of Arts and
Sciences the outstanding receivable on April 30,2016 P 5,000.00
31 Paid salaries for the period May 16-31
( Refer to attached payroll)
31 Sold various books to Eastern Pampanga College
Terms; 2/10, n/30 P 28,000.00
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