Record the following transactions with a reference number that serves as a unique identifier for the transaction, description of the transaction July 1 – Donald Blake opened Blake Collectibles by depositing $320,000 to the business' bank account. July 2 – Paid six months’ rent in advance, $20,000. July 4 – Hired a clerk, to be paid $2,200 per week. July 6 – Purchased equipment for $15,000. Paid $3,000 in cash, the remainder to be paid in installments of $6,000 every two weeks. July 8 – Purchased merchandise on credit from Colson Trade, terms n/30, Free On Board Shipping point, $60,000. July 8 – Paid Steele Freight for the shipping charges on the merchandise purchased above, $327. July 10 – Sold merchandise to Anderson Store amounting to $31,725. Anderson paid 40% of the purchases, the balance to be paid next month. July 11 – Purchased office supplies for cash, $3,209. July 12 – Returned damaged merchandise to Colson Trade for credit amounting to $6,000. July 15 – Purchased merchandise on credit from Sideshow Collectibles, terms 3/10, n/30, Free On Board Shipping point, $64,380. Sideshow Collectibles paid the related freight cost amounting to $2,100. July 17 – Sold merchandise for cash, $44,300. July 17 – Paid the assistant his first week’s wages. July 18 – Returned damaged merchandise to Sideshow Collectibles amounting to $4,320. July 21 – Paid the next installment on the equipment purchased on July 6. July 22 – Paid the July 15 purchase. July 23 – Sold merchandise on credit to Flanders Trading amounting to $36,780, terms, 2/10, n/30, Free On Board Shipping Point. Blake Collectibles paid the freight costs amounting to $1,324. July 24 – Paid the assistant for the week. July 24 – Flanders returned damaged merchandise amounting to $3,050. July 28 – Received an electric bill of $400, to be paid on August 1. July 30 – Received payment from Flanders Trading in full.
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.
Record the following transactions with a reference number that serves as a unique identifier for the transaction, description of the transaction
July 1 – Donald Blake opened Blake Collectibles by depositing $320,000 to the business' bank account.
July 2 – Paid six months’ rent in advance, $20,000.
July 4 – Hired a clerk, to be paid $2,200 per week.
July 6 – Purchased equipment for $15,000. Paid $3,000 in cash, the remainder to be paid in installments of $6,000 every two weeks.
July 8 – Purchased merchandise on credit from Colson Trade, terms n/30, Free On Board Shipping point, $60,000.
July 8 – Paid Steele Freight for the shipping charges on the merchandise purchased above, $327.
July 10 – Sold merchandise to Anderson Store amounting to $31,725. Anderson paid 40% of the purchases, the balance to be paid next month.
July 11 – Purchased office supplies for cash, $3,209.
July 12 – Returned damaged merchandise to Colson Trade for credit amounting to $6,000.
July 15 – Purchased merchandise on credit from Sideshow Collectibles, terms 3/10, n/30, Free On Board Shipping point, $64,380. Sideshow Collectibles paid the
related freight cost amounting to $2,100.
July 17 – Sold merchandise for cash, $44,300.
July 17 – Paid the assistant his first week’s wages.
July 18 – Returned damaged merchandise to Sideshow Collectibles amounting to $4,320.
July 21 – Paid the next installment on the equipment purchased on July 6.
July 22 – Paid the July 15 purchase.
July 23 – Sold merchandise on credit to Flanders Trading amounting to $36,780, terms, 2/10, n/30, Free On Board Shipping Point. Blake Collectibles paid the freight costs amounting to $1,324.
July 24 – Paid the assistant for the week.
July 24 – Flanders returned damaged merchandise amounting to $3,050.
July 28 – Received an electric bill of $400, to be paid on August 1.
July 30 – Received payment from Flanders Trading in full.
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