Required information [The following information applies to the questions displayed below.] Performance Plastics Company (PPC) has been operating for three years. The beginning account balances are: Cash Accounts Receivable Inventory Supplies Notes Receivable (due in three years) Equipment Buildings $54,250 9,150 51,250 6,750 6,000 95,000 184,000 43,500 39,000 Land Accounts Payable Notes Payable (due in three years) Common Stock 100,000 150,000 Retained Earnings 160,900 During the year, the company had the following summarized activities: a. Purchased equipment that cost $26,850; paid $7,850 cash and signed a two-year note for the balance. b. Issued an additional 2,400 shares of common stock for $24,000 cash. c. Borrowed $78,500 cash from a local bank, payable June 30, in two years. d. Purchased supplies for $7,300 cash. e. Built an addition to the factory buildings for $75,500; paid $24,250 in cash and signed a three-year note for the balance. f. Hired a new president to start January 1 of next year. The contract was for $95,000 for each full year worked. Record the transaction effects determined in part 1 using journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field).
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.
![Required information
[The following information applies to the questions displayed below.]
* Performance Plastics Company (PPC) has been operating for three years. The beginning account balances are:
$ 54,250
9,150
51,250
6,750
6,000
Cash
Accounts Receivable
Inventory
Supplies
Notes Receivable (due in three years)
Equipment
Buildings
95,000
184,000
Land
43,500
Accounts Payable
39,000
Notes Payable (due in three years)
100,000
Common Stock
150,000
Retained Earnings
160,900
During the year, the company had the following summarized activities:
a. Purchased equipment that cost $26,850; paid $7,850 cash and signed a two-year note for the balance.
b. Issued an additional 2,400 shares of common stock for $24,000 cash.
c. Borrowed $78,500 cash from a local bank, payable June 30, in two years.
d. Purchased supplies for $7,300 cash.
e. Built an addition to the factory buildings for $75,500; paid $24,250 in cash and signed a three-year note for the
balance.
f. Hired a new president to start January 1 of next year. The contract was for $95,000 for each full year worked.
2. Record the transaction effects determined in part 1 using journal entries. (If no entry is required for a transaction/event, select "No
Journal Entry Required" in the first account field).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9b52f557-3b61-4a6d-a293-05da09ea3c21%2F1f0cc15e-01d2-40ed-8a67-de136eae575a%2Fl97f5dp_processed.jpeg&w=3840&q=75)
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