Required information [The following information applies to the questions displayed below.] The accounts and balances for Babysitting Co. on June 1 are provided below. Cash Accounts receivable office equipment Supplies. Accounts payable Kelly Connor, Capital Kelly Connor, Drawing 9,100 1,480 4,550 880 3,550 12,460 -0- Fees income Rent expense Utilities expense Salaries expense The following transactions occurred during the month of June. a. Collected $580 from credit customers. b. Issued a check for $1,350 for November's rent. c. Paid $2,650 for salaries. d. The owner withdrew $380 in cash for personal expenses. e. Issued a check for $750 to pay the monthly utility bill. f. Received $3,800 in cash for services performed. g. Purchased office equipment for $1,680 on credit. -0- -0- -0- -0-
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.]
The accounts and balances for Babysitting Co. on June 1 are provided below.
Cash
Accounts receivable
office equipment
Supplies.
Accounts payable
Kelly Connor, Capital
Kelly Connor, Drawing
9,100
1,480
4,550
880
3,550
12,460
-0-
Fees income
Rent expense
Utilities expense
Salaries expense
The following transactions occurred during the month of June.
a. Collected $580 from credit customers.
b. Issued a check for $1,350 for November's rent.
c. Paid $2,650 for salaries.
d. The owner withdrew $380 in cash for personal expenses.
e. Issued a check for $750 to pay the monthly utility bill.
f. Received $3,800 in cash for services performed.
g. Purchased office equipment for $1,680 on credit.
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