QUESTIONS: Direction: Journalize the following transactions and post the accounts to the general ledger (Use T-accounts only). In September of the current year, Reno Mo began a business he called Furniture Repair Shop and completed the following transactions during the month: September 1 - Invested P300,000 to start the business. 2 - Paid P10,000 for the rent of the shop building. 3 - Purchased P80,000 of shop machinery, giving P30,000 cash and a promissory note in payment of the balance. 5 - Purchased P9,500 of shop supplies from R. Sonora on credit. 9 - Collected cash on delivery of a cabinet to a customer, P20,000. 13 - Completed and delivered sofa bed to J. Belmonte P13,000 on credit. 15 - Paid wages of shop helpers, P15,000. 15 - Paid the delivery services rendered by AKO TRUCKING, P8,000. 18 - Paid the account due to R. Sonora. 20 - Took P1,000 worth of shop supplies for use in his carport. 23 - Received P5,000 from J. Belmonte in partial payment of her account. 25 - Withdrew P5,000 for personal expenses. 28 - Collected P5,000 on the delivery of small chairs. 30 - Paid P8,000 for the delivery service on the second half of the month. 30 - Paid the wages of the shop helpers, P15,000. 30 - Paid MERALCO bills, P3,500.
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.
QUESTIONS:
Direction: Journalize the following transactions and post the accounts to the general ledger (Use T-accounts only).
In September of the current year, Reno Mo began a business he called Furniture Repair Shop and completed the following transactions during the month:
September 1 - Invested P300,000 to start the business.
2 - Paid P10,000 for the rent of the shop building.
3 - Purchased P80,000 of shop machinery, giving P30,000 cash and a promissory note in payment of the balance.
5 - Purchased P9,500 of shop supplies from R. Sonora on credit.
9 - Collected cash on delivery of a cabinet to a customer, P20,000.
13 - Completed and delivered sofa bed to J. Belmonte P13,000 on credit.
15 - Paid wages of shop helpers, P15,000.
15 - Paid the delivery services rendered by AKO TRUCKING, P8,000.
18 - Paid the account due to R. Sonora.
20 - Took P1,000 worth of shop supplies for use in his carport.
23 - Received P5,000 from J. Belmonte in partial payment of her account.
25 - Withdrew P5,000 for personal expenses.
28 - Collected P5,000 on the delivery of small chairs.
30 - Paid P8,000 for the delivery service on the second half of the month.
30 - Paid the wages of the shop helpers, P15,000.
30 - Paid MERALCO bills, P3,500.
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