Put the following transactions into journal entries and then into T-accounts. Feb. 1 The following assets were received from Rhaenyra Targaryen: Cash, $10,000; Accounts receivable. $1,000; Supplies, $ 1500; and equipment, $8000. There were no liabilities received. Feb. 1 Paid two months' rent on a lease contract, $5000. Feb. 1 Paid the premium on the business insurance policies for the year, $2000. Feb. 4 Received cash from clients as an advance payment for services to be provided, $5000. Feb. 6 Purchased office furniture on account from Ashley Inc, $ 2000. Feb. 8 Received cash from clients on account, $1000. Feb. 10 Paid local TV channel $1000 for advertisement. Feb. 11 Paid Ashley Inc. $1000 for debt incurred on Feb. 6. Feb. 12 Recorded services provided on account for the period Feb. 1-12. $2000. Feb. 15 Paid Alicent Hightower for her part-time salary, $ 500. Feb. 15 Recorded cash from cash clients for fees/revenue earned Feb. 1-15, $3000. Feb. 16 Paid cash for supplies, $800. Feb. 18 Recorded services provided on account for Feb. 16-18, $1000. Feb. 18 Recorded cash from cash clients for fees/revenue earned Feb. 16-18, $1500. Feb. 19 Received cash from clients on account, $1500. Feb. 20 Paid Otto Hightower $500 for his consultant service. Feb. 21 Paid Telephone bill for Feb. $200. Feb. 22 Paid utility bill for Feb. $400. Feb. 28 Recorded cash from cash clients for fee/revenue earned Feb. 18-28. $2000. Feb. 28 Recorded services provided on account for Feb. 18-28. $1000.
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.
Put the following transactions into
- Feb. 1 The following assets were received from Rhaenyra Targaryen: Cash, $10,000;
Accounts receivable . $1,000; Supplies, $ 1500; and equipment, $8000. There were no liabilities received. - Feb. 1 Paid two months' rent on a lease contract, $5000.
- Feb. 1 Paid the premium on the business insurance policies for the year, $2000.
- Feb. 4 Received cash from clients as an advance payment for services to be provided, $5000.
- Feb. 6 Purchased office furniture on account from Ashley Inc, $ 2000.
- Feb. 8 Received cash from clients on account, $1000.
- Feb. 10 Paid local TV channel $1000 for advertisement.
- Feb. 11 Paid Ashley Inc. $1000 for debt incurred on Feb. 6.
- Feb. 12 Recorded services provided on account for the period Feb. 1-12. $2000.
- Feb. 15 Paid Alicent Hightower for her part-time salary, $ 500.
- Feb. 15 Recorded cash from cash clients for fees/revenue earned Feb. 1-15, $3000.
- Feb. 16 Paid cash for supplies, $800.
- Feb. 18 Recorded services provided on account for Feb. 16-18, $1000.
- Feb. 18 Recorded cash from cash clients for fees/revenue earned Feb. 16-18, $1500.
- Feb. 19 Received cash from clients on account, $1500.
- Feb. 20 Paid Otto Hightower $500 for his consultant service.
- Feb. 21 Paid Telephone bill for Feb. $200.
- Feb. 22 Paid utility bill for Feb. $400.
- Feb. 28 Recorded cash from cash clients for fee/revenue earned Feb. 18-28. $2000.
- Feb. 28 Recorded services provided on account for Feb. 18-28. $1000.
- Feb. 28 Rhaenyra Targaryen received $ 5000 as salary from HouseofDragon Inc
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