Question Content Area Liability Transactions The following items were selected from among the transactions completed by Shin Co. during the current year: Jan. 10. Purchased merchandise on account from Beckham Co., $144,000, terms n/30. Feb. 9. Issued a 30-day, 7% note for $144,000 to Beckham Co., on account. Mar. 11. Paid Beckham Co. the amount owed on the note of February 9. May 1. Borrowed $139,200 from Verity Bank, issuing a 45-day, 8% note. June 1. Purchased tools by issuing a $81,000, 60-day note to Rassmuessen Co., which discounted the note at the rate of 7%. 15. Paid Verity Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day, 7% note for $139,200. (Journalize both the debit and credit to the notes payable account.) July 30. Paid Verity Bank the amount due on the note of June 15. 30. Paid Rassmuessen Co. the amount due on the note of June 1. Dec. 1. Purchased office equipment from Lambert Co. for $108,000, paying $18,000 and issuing a series of ten 5% notes for $9,000 each, coming due at 30-day intervals. 15. Settled a product liability lawsuit with a customer for $67,000, payable in January. Shin accrued the loss in a litigation claims payable account. 31. Paid the amount due Lambert Co. on the first note in the series issued on December 1. Required: 1. Journalize the transactions. If an amount box does not require an entry, leave it blank. Assume a 360-day year. Don't round the intermediate calculations and round the final answers to the nearest dollar amount. For a compound transaction, accounts should be listed largest to smallest. Date Account Debit Credit Jan. 10 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 Feb. 9 fill in the blank 8 fill in the blank 9 fill in the blank 11 fill in the blank 12 Mar. 11 fill in the blank 14 fill in the blank 15 fill in the blank 17 fill in the blank 18 fill in the blank 20 fill in the blank 21 May 1 fill in the blank 23 fill in the blank 24 fill in the blank 26 fill in the blank 27 June 1 fill in the blank 29 fill in the blank 30 fill in the blank 32 fill in the blank 33 fill in the blank 35 fill in the blank 36 June 15 fill in the blank 38 fill in the blank 39 fill in the blank 41 fill in the blank 42 fill in the blank 44 fill in the blank 45 fill in the blank 47 fill in the b
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.
Question Content Area
Liability Transactions
The following items were selected from among the transactions completed by Shin Co. during the current year:
| Jan. 10. | Purchased merchandise on account from Beckham Co., $144,000, terms n/30. |
| Feb. 9. | Issued a 30-day, 7% note for $144,000 to Beckham Co., on account. |
| Mar. 11. | Paid Beckham Co. the amount owed on the note of February 9. |
| May 1. | Borrowed $139,200 from Verity Bank, issuing a 45-day, 8% note. |
| June 1. | Purchased tools by issuing a $81,000, 60-day note to Rassmuessen Co., which discounted the note at the rate of 7%. |
| 15. | Paid Verity Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day, 7% note for $139,200. (Journalize both the debit and credit to the notes payable account.) |
| July 30. | Paid Verity Bank the amount due on the note of June 15. |
| 30. | Paid Rassmuessen Co. the amount due on the note of June 1. |
| Dec. 1. | Purchased office equipment from Lambert Co. for $108,000, paying $18,000 and issuing a series of ten 5% notes for $9,000 each, coming due at 30-day intervals. |
| 15. | Settled a product liability lawsuit with a customer for $67,000, payable in January. Shin accrued the loss in a litigation claims payable account. |
| 31. | Paid the amount due Lambert Co. on the first note in the series issued on December 1. |
Required:
1. Journalize the transactions. If an amount box does not require an entry, leave it blank. Assume a 360-day year. Don't round the intermediate calculations and round the final answers to the nearest dollar amount.
For a compound transaction, accounts should be listed largest to smallest.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Jan. 10 |
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fill in the blank 2 | fill in the blank 3 |
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fill in the blank 5 | fill in the blank 6 | |
| Feb. 9 |
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fill in the blank 8 | fill in the blank 9 |
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fill in the blank 11 | fill in the blank 12 | |
| Mar. 11 |
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fill in the blank 14 | fill in the blank 15 |
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fill in the blank 17 | fill in the blank 18 | |
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fill in the blank 20 | fill in the blank 21 | |
| May 1 |
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fill in the blank 23 | fill in the blank 24 |
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fill in the blank 26 | fill in the blank 27 | |
| June 1 |
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fill in the blank 29 | fill in the blank 30 |
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fill in the blank 32 | fill in the blank 33 | |
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fill in the blank 35 | fill in the blank 36 | |
| June 15 |
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fill in the blank 38 | fill in the blank 39 |
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fill in the blank 41 | fill in the blank 42 | |
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fill in the blank 44 | fill in the blank 45 | |
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fill in the blank 47 | fill in the blank 48 | |
| July 30 |
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fill in the blank 50 | fill in the blank 51 |
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fill in the blank 53 | fill in the blank 54 | |
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fill in the blank 56 | fill in the blank 57 | |
| July 30 |
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fill in the blank 59 | fill in the blank 60 |
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fill in the blank 62 | fill in the blank 63 | |
| Dec. 1 |
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fill in the blank 65 | fill in the blank 66 |
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fill in the blank 68 | fill in the blank 69 | |
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fill in the blank 71 | fill in the blank 72 | |
| Dec. 15 |
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fill in the blank 74 | fill in the blank 75 |
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fill in the blank 77 | fill in the blank 78 | |
| Dec. 31 |
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fill in the blank 80 | fill in the blank 81 |
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fill in the blank 83 | fill in the blank 84 | |
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fill in the blank 86 | fill in the blank 87 |
2. Journalize the
| Item | Account | Debit | Credit |
|---|---|---|---|
| a. |
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fill in the blank 89 | fill in the blank 90 |
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fill in the blank 92 | fill in the blank 93 | |
| b. |
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fill in the blank 95 | fill in the blank 96 |
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fill in the blank 98 | fill in the blank 99 |
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