Reguerment :Prepare the ledger account (Posting January transactions)? DateAccountDebitCreditJan 1Cash100,000Common Stock100,000Prepaid RentCash36,000Jan 236,000EquipmentCashJan 380,00060,00020,000Notes PayableOffice SuppliesAccounts PayableJan 417,60017,600Jan 13Cash28,500Service Revenue28,500Accounts PayableCashJan 1317,60017,600Wages ExpenseCashJan 1419,10019,100Jan 18Cash32,90021,200Accounts ReceivableService Revenue54,100Jan 23CashAccounts Receivable15,30015,300CashUnearned RevenueJan 254,0004,000Office SuppliesAccounts PayableJan 265,2005,200Wages ExpenseCashJan 2819,10019,100Jan 31Dividends5,000Cash5,000Electricity ExpenseAccounts PayableJan 312,4702,470Telephone ExpenseAccounts PayableJan 311,4941,494Jan 31Miscellaeous Expense3,470Cash3,470 ExampleCompany A was incorporated on January 1, 2010 with an initial capital of5,000 shares of common stock having $20 par value. During the first monthof its operations, the company engaged in following transactions:DateTransactionJan 2 An amount of $36,000 was paid as advance rent for three months.Jan 3 Paid $60,000 cash on the purchase of equipment costing $80,000.The remaining amount was recognized as a one year note payablewith interest rate of 9%.Jan 4Purchased office supplies costing $17,600 on account.Jan 13 Provided services to its customers and received $28,500 in cash.Jan 13 Paid the accounts payable on the office supplies purchased onJanuary 4.Jan 14 Paid wages to its employees for first two weeks of January,aggregating $19,100.Jan 18 Provided $54,100 worth of services to its customers. They paid$32,900 and promised to pay the remaining amount.Jan 23 Received $15,300 from customers for the services provided onJanuary 18.Jan 25 Received $4,000 as an advance payment from customers.Jan 26 Purchased office supplies costing $5,200 on account.Jan 28 Paid wages to its employees for the third and fourth week ofJanuary: $19,10o.Jan 31 Paid $5,000 as dividends.Jan 31 Received electricity bill of $2,470.Jan 31 Received telephone bill of $1,494.Jan 31 Miscellaneous expenses paid during the month totaled $3,470The following table shows the journal entries for the above events.

Ledger accounts are used for posting transactions that are recorded in journal first. These ledger…

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Business

Accounting

Reguerment : Prepare the ledger account (Posting January transactions)?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 8EA: Anslo Fabricating, Inc. is authorized to issue 10,000,000 shares of $5 stated value common stock....

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Concept explainers

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

Reguerment :

Prepare the ledger account (Posting January transactions)?

Date
Account
Debit
Credit
Jan 1
Cash
100,000
Common Stock
100,000
Prepaid Rent
Cash
36,000
Jan 2
36,000
Equipment
Cash
Jan 3
80,000
60,000
20,000
Notes Payable
Office Supplies
Accounts Payable
Jan 4
17,600
17,600
Jan 13
Cash
28,500
Service Revenue
28,500
Accounts Payable
Cash
Jan 13
17,600
17,600
Wages Expense
Cash
Jan 14
19,100
19,100
Jan 18
Cash
32,900
21,200
Accounts Receivable
Service Revenue
54,100
Jan 23
Cash
Accounts Receivable
15,300
15,300
Cash
Unearned Revenue
Jan 25
4,000
4,000
Office Supplies
Accounts Payable
Jan 26
5,200
5,200
Wages Expense
Cash
Jan 28
19,100
19,100
Jan 31
Dividends
5,000
Cash
5,000
Electricity Expense
Accounts Payable
Jan 31
2,470
2,470
Telephone Expense
Accounts Payable
Jan 31
1,494
1,494
Jan 31
Miscella
eous Expense
3,470
Cash
3,470

Example
Company A was incorporated on January 1, 2010 with an initial capital of
5,000 shares of common stock having $20 par value. During the first month
of its operations, the company engaged in following transactions:
Date
Transaction
Jan 2 An amount of $36,000 was paid as advance rent for three months.
Jan 3 Paid $60,000 cash on the purchase of equipment costing $80,000.
The remaining amount was recognized as a one year note payable
with interest rate of 9%.
Jan 4
Purchased office supplies costing $17,600 on account.
Jan 13 Provided services to its customers and received $28,500 in cash.
Jan 13 Paid the accounts payable on the office supplies purchased on
January 4.
Jan 14 Paid wages to its employees for first two weeks of January,
aggregating $19,100.
Jan 18 Provided $54,100 worth of services to its customers. They paid
$32,900 and promised to pay the remaining amount.
Jan 23 Received $15,300 from customers for the services provided on
January 18.
Jan 25 Received $4,000 as an advance payment from customers.
Jan 26 Purchased office supplies costing $5,200 on account.
Jan 28 Paid wages to its employees for the third and fourth week of
January: $19,10o.
Jan 31 Paid $5,000 as dividends.
Jan 31 Received electricity bill of $2,470.
Jan 31 Received telephone bill of $1,494.
Jan 31 Miscellaneous expenses paid during the month totaled $3,470
The following table shows the journal entries for the above events.

Definition Definition Act of publishing journal entries in their respective general ledger accounts to create a consolidated view of an account. At the end of the fiscal year, ledger accounts are balanced and account balances in every ledger are consolidated together to create the trial balance.

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