Reconstruct the journal entry for cash receipts from customers, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Date December 31 Account Title Debit Credit
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.
H 2
![Requirement
General
Journal
View transaction list
1
Using the income statement, the comparative balance sheet, and the additional information given above, re
the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree
31, current year balances.
Journal entry worksheet
2
Date
December
31
General
Ledger
Note: Enter debits before credits.
Trial Balance Direct Method
Record entry
3 4 5 6
Reconstruct the journal entry for cash receipts from customers, incorporating
the change in the related balance sheet account(s), if any.
Account Title
7
Clear entry
8
Indirect
Method
Debit
14
Credit
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2ac1177b-3ef9-4d19-a44c-ef7c62196275%2F764936c0-79e0-46bf-865e-15e1e5109612%2Fkf2pkc_processed.png&w=3840&q=75)
![Pelcher Company's current year income statement, comparative balance sheets, and additional information follow. For the year,
(1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of
inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in
advance and are initially debited to Prepaid Expenses.
Assets
Cash
Accounts receivable
Inventory
Prepaid expenses
Total current assets
Equipment
Accumulated depreciation-Equipment
Total assets
PELCHER COMPANY
Comparative Balance Sheets
December 31
Liabilities and Equity
Accounts payable
Short-term notes payable
Total current liabilities.
Long-term notes payable
Total liabilities
Equity
Common stock, $5
value
Paid-in capital in excess of par, common stock
Retained earnings
Total liabilities and equity
PELCHER COMPANY
Income Statement
For Current Year Ended December 31
Sales
Cost of goods sold
Gross profit
Operating expenses
Depreciation expense
Other expenses
Other gains (losses).
Loss on sale of equipment
Income before taxes.
Income taxes expense
Net income
$ 25,000
197,000
Additional Information on Current Year Transactions
Current Year
$ 76,000
77,000
279,000
3,100
435, 100
245,000
(60,000)
$ 620,100
$ 865,000
345,000
520,000
222,000
(7,100)
290,900
51,000
$ 239,900
55,100
18,000
73,100
79,000
152,100
192,500
67,500
208,000
620,100
Prior Year
$80,100
59,000
255,000
3,900
398,000
168,000
(72,000)
$ 494,000
119,000
11,000
130,000
59,000
189,000
170,000
135,000
494,000
0
a. The loss on the cash sale of equipment was $7,100 (details in b).
00, for $19,9
cash.
Sold equipment costing $64,000, with accumulated depreciation of
c. Purchased equipment costing $141,000 by paying $34,000 cash and signing a long-term note payable for the balance.
d. Borrowed $7,000 cash by signing a short-term note payable.
e. Paid $87,000 cash to reduce the long-term notes payable.
f. Issued 4,500 shares of common stock for $20 cash per share.
g. Declared and paid cash dividends of $166,900.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2ac1177b-3ef9-4d19-a44c-ef7c62196275%2F764936c0-79e0-46bf-865e-15e1e5109612%2F3qde2o_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)