PZ is a consultant. During the month of October 2022, he completed the following transactions. Oct-01 Began his business by investing P500,000 on the business checking account 2 Paid P120,000 rent for one year beginning October 1 2 Acquire second hand vehicle for business operation. Acquisition cost P150.000: Residual Value P60.000: Useful Life 3 years. 2 Purchase furniture P100,000 paying P20,000 cash and signed a note for the remaining amount Residual value of P10,000: Useful life of 10 years. 3 Received cash from client for service rendered. P25,000 5 Billed client for service rendered, P15,000 6 Purchase supplies from National Bookstore, P12,000 14 Received cash from previously billed customer 15 Paid P7,500 salary to employee 16 Paid insurance for one year, P12,000 20 Received bill from advertiser, P5,000 25 Billed client for service rendered, P35,000 28 Paid mechanic for repairs and maintenance of vehicle. P5,000 30 Received cash from client for service rendered, P15,000 31 Paid P7,500 salary to employee 31 Received utility bills, meralco P4,500, water district P500, telephone P2.500 31 The owner withdrew P20,000 for personal use
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.
Answer for journalizing, posting, and
Step by step
Solved in 4 steps with 4 images
