Present the Journal entries in the books of Greenland Supplies Co. and the corresponding Journal entry in the book of its its suppliers for all of the transactions related to the following purchase invoices. Assume that Greenland Supplies Co. and its suppliers use the periodic inventory system. Supplier: Three Stars Co. P20,000 Date of Invoice: May 13 Freight P200 Credit Terms: 2/10, n/30 Freight terms: FOB Shipping Point Freight paid by: Greenland Supplies Co. Date Account paid: May 25 Supplier: Sterling Paper Products P12,000 Date of Invoice: May 17 Freight P100 Credit terms: 2/10, 1/15, n/30 Freight terms: FOB Destination Freight paid by: Greenland Supplies Co. Date Account paid: May 29 Supplier: National Bookstore P17,000 Date of Invoice: May 22 Freight P150 Credit terms; 1/10, n/20 Freight terms: FOB Shipping Point Freight paid by: National Bookstore Date Account paid: May 31 Supplier: ABC School Supplies P8,500 Date of Invoice: May 28 Freight P170 Credit terms; n/30 Freight terms: FOB Destination Freight paid by: ABC School Supplies Date Account paid: June 7
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.
Present the Journal entries in the books of Greenland Supplies Co. and the corresponding
- Supplier: Three Stars Co. P20,000
Date of Invoice: May 13
Freight P200
Credit Terms: 2/10, n/30
Freight terms: FOB Shipping Point
Freight paid by: Greenland Supplies Co.
Date Account paid: May 25
- Supplier: Sterling Paper Products P12,000
Date of Invoice: May 17
Freight P100
Credit terms: 2/10, 1/15, n/30
Freight terms: FOB Destination
Freight paid by: Greenland Supplies Co.
Date Account paid: May 29
- Supplier: National Bookstore P17,000
Date of Invoice: May 22
Freight P150
Credit terms; 1/10, n/20
Freight terms: FOB Shipping Point
Freight paid by: National Bookstore
Date Account paid: May 31
- Supplier: ABC School Supplies P8,500
Date of Invoice: May 28
Freight P170
Credit terms; n/30
Freight terms: FOB Destination
Freight paid by: ABC School Supplies
Date Account paid: June 7
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