Purchases and Cash Payments Journals Transactions related to purchases and cash payments completed by Wisk Away Cleaning Services Inc. during the month of May 20Y5 are as follows: May 1. Issued Check No. 57 to Bio Safe Supplies Inc. in payment of account, $360. 3. Purchased cleaning supplies on account from Brite N' Shine Products Inc., $220. 8. Issued Check No. 58 to purchase equipment from Carson Equipment Sales, $3,680. 12. Purchased cleaning supplies on account from Porter Products Inc., $310. 15. Issued Check No. 59 to Bowman Electrical Service in payment of account, $180. 18. Purchased supplies on account from Bio Safe Supplies Inc., $410. 20. Purchased electrical repair services from Bowman Electrical Service on account, $150. 26. Issued Check No. 60 to Brite N’ Shine Products Inc. in payment of May 3 invoice. 31. Issued Check No. 61 in payment of salaries, $7,050. Wisk Away Cleaning Services Inc. uses the following accounts: Cash 11 Cleaning Supplies 14 Equipment 18 Accounts Payable 21 Salary Expense 51 Electrical Service Expense 53 Prepare a purchases journal and a cash payments journal to record the above transactions in chronological order. If an amount box does not require an entry, leave it blank and select "No entry required" from the dropdown. If no entry is required in "Other Accounts Dr." then select "No entry required". PURCHASES JOURNAL PAGE 36 DATE Account Credited Post. Ref. Accounts Payable Cr. Cleaning Supplies Dr. Other Accounts Dr. Post. Ref. Amount 20Y5 ✔ ✔ ✔ ✔ May 31 Total () () CASH PAYMENTS JOURNAL PAGE 41 DATE Ck. No. Account Debited Post. Ref. Other Accounts Dr. Accounts Payable Dr. Cash Cr. 20Y5 ✔ ✔ ✔ May 31 Total () ()
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.
Purchases and Cash Payments Journals
Transactions related to purchases and cash payments completed by Wisk Away Cleaning Services Inc. during the month of May 20Y5 are as follows:
| May 1. | Issued Check No. 57 to Bio Safe Supplies Inc. in payment of account, $360. | |
| 3. | Purchased cleaning supplies on account from Brite N' Shine Products Inc., $220. | |
| 8. | Issued Check No. 58 to purchase equipment from Carson Equipment Sales, $3,680. | |
| 12. | Purchased cleaning supplies on account from Porter Products Inc., $310. | |
| 15. | Issued Check No. 59 to Bowman Electrical Service in payment of account, $180. | |
| 18. | Purchased supplies on account from Bio Safe Supplies Inc., $410. | |
| 20. | Purchased electrical repair services from Bowman Electrical Service on account, $150. | |
| 26. | Issued Check No. 60 to Brite N’ Shine Products Inc. in payment of May 3 invoice. | |
| 31. | Issued Check No. 61 in payment of salaries, $7,050. |
Wisk Away Cleaning Services Inc. uses the following accounts:
| Cash | 11 |
| Cleaning Supplies | 14 |
| Equipment | 18 |
| Accounts Payable | 21 |
| Salary Expense | 51 |
| Electrical Service Expense | 53 |
Prepare a purchases journal and a cash payments journal to record the above transactions in chronological order. If an amount box does not require an entry, leave it blank and select "No entry required" from the dropdown.
If no entry is required in "Other Accounts Dr." then select "No entry required".
| PURCHASES JOURNAL | PAGE 36 | ||||||
| DATE | Account Credited | Post. Ref. | Accounts Payable Cr. | Cleaning Supplies Dr. | Other Accounts Dr. | Post. Ref. | Amount |
| 20Y5 | |||||||
| ✔ | |||||||
| ✔ | |||||||
| ✔ | |||||||
| ✔ | |||||||
| May 31 | Total | ||||||
| () | () |
| CASH PAYMENTS JOURNAL | PAGE 41 | |||||
| DATE | Ck. No. | Account Debited | Post. Ref. | Other Accounts Dr. | Accounts Payable Dr. | Cash Cr. |
| 20Y5 | ||||||
| ✔ | ||||||
| ✔ | ||||||
| ✔ | ||||||
| May 31 | Total | |||||
| () | () |
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