Put-A-Wrench-In-It sells hand tools. During the month of May 2019, the following transactions occurred. Assume zero opening balances for the subledger and general journal accounts. Assume no entries were made directly to the accounts payable general ledger from the general journal. May 2 Purchased inventory for $6,900 on account from TopCraft. May 7 Paid salaries for $2,130 with cheque #241. May 10 Purchased inventory for $4,490 cash from James Inc. with cheque #242. May 13 Paid the full amount owing to TopCraft from the May 2 transaction with cheque #243. May 20 Purchased inventory for $7,900 on account from Debolt Inc. Requireda) Record the above transactions in the purchases journal and the cash payments journal.b) Post the appropriate transactions from the journals to the subledger accounts.c) At the end of the month, total the journals and update the accounts payable control account.Do not enter dollar signs or commas in the input boxes. Purchases Journal Page 6 Date Account Invoice Merchandise Inventory (DR) Office Supplies (DR) Other (DR) Account Payable (CR) May 2 TopCraft $Answer $Answer $Answer $Answer May 20 Debolt Inc $Answer $Answer $Answer $Answer May 31 Total $Answer $Answer $Answer $Answer Cash Payments Journal Page 4 Date Account Cheque # Accounts Payable (DR) Other (DR) Merchandise Inventory (DR) Cash (CR) May 7 Salaries Expense Answer $Answer $Answer $Answer $Answer May 10 James Inc. Answer $Answer $Answer $Answer $Answer May 13 TopCraft Answer $Answer $Answer $Answer $Answer May 31 Total $Answer $Answer $Answer $Answer Account: Accounts Payable GL No. 200 Date Description DR CR Balance May 31 Adjustment from purchases $Answer $Answer $Answer AnswerDRCR May 31 Adjustment from cash payments $Answer $Answer $Answer AnswerDRCR Account: TopCraft Date DR CR Balance May 2 $Answer $Answer $Answer AnswerDRCR May 13 $Answer $Answer $Answer AnswerDRCR Account: Debolt Inc Date DR CR Balance May 20 $Answer $Answer $Answer AnswerDRCR
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-A-Wrench-In-It sells hand tools. During the month of May 2019, the following transactions occurred. Assume zero opening balances for the subledger and general journal accounts. Assume no entries were made directly to the accounts payable general ledger from the general journal.
| May 2 | Purchased inventory for $6,900 on account from TopCraft. |
| May 7 | Paid salaries for $2,130 with cheque #241. |
| May 10 | Purchased inventory for $4,490 cash from James Inc. with cheque #242. |
| May 13 | Paid the full amount owing to TopCraft from the May 2 transaction with cheque #243. |
| May 20 | Purchased inventory for $7,900 on account from Debolt Inc. |
Required
a) Record the above transactions in the purchases journal and the cash payments journal.
b)
c) At the end of the month, total the journals and update the accounts payable control account.
Do not enter dollar signs or commas in the input boxes.
| Purchases Journal | Page 6 | |||||
| Date | Account | Invoice | Merchandise Inventory (DR) | Office Supplies (DR) | Other (DR) | Account Payable (CR) |
| May 2 | TopCraft | $Answer | $Answer | $Answer | $Answer | |
| May 20 | Debolt Inc | $Answer | $Answer | $Answer | $Answer | |
| May 31 | Total | $Answer | $Answer | $Answer | $Answer |
| Cash Payments Journal | Page 4 | |||||
| Date | Account | Cheque # | Accounts Payable (DR) | Other (DR) | Merchandise Inventory (DR) | Cash (CR) |
| May 7 | Salaries Expense | Answer | $Answer | $Answer | $Answer | $Answer |
| May 10 | James Inc. | Answer | $Answer | $Answer | $Answer | $Answer |
| May 13 | TopCraft | Answer | $Answer | $Answer | $Answer | $Answer |
| May 31 | Total | $Answer | $Answer | $Answer | $Answer |
| Account: Accounts Payable | GL No. 200 | ||||
| Date | Description | DR | CR | Balance | |
| May 31 | Adjustment from purchases | $Answer | $Answer | $Answer | AnswerDRCR |
| May 31 | Adjustment from cash payments | $Answer | $Answer | $Answer | AnswerDRCR |
| Account: TopCraft | ||||
| Date | DR | CR | Balance | |
| May 2 | $Answer | $Answer | $Answer | AnswerDRCR |
| May 13 | $Answer | $Answer | $Answer | AnswerDRCR |
| Account: Debolt Inc | ||||
| Date | DR | CR | Balance | |
| May 20 | $Answer | $Answer | $Answer | AnswerDRCR |
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