Required: Journalize the following transactions: The following transactions were completed by Dindo Maputin, owner and operator of Quality Auto Repair Shop for the month of December 200k Dec. 1 2 3 4 5 6 7 8 9 10 12 15 Maputin Invested P 150,000 to start his auto repair shop business. Paid municipal licenses and permits, P 1,250.50. Bought repair equipment costing P25,000 for cash. Received cash for repair service rendered P10,200. Bought office tables and chairs from XOX Trading on credit, P12,530. Bought computer from Burroughs, Ltd, P24,000 terms cash. Maputin invested his personal tools in the business at P2,368.50 Paid rent for the shop, P3,800. Billed a customer for repair service rendered, P 12,560.25. Bought additional repair equipment from Lycon Company on the credit of P 32,000. Bought office supplies on account from Cunanan Bookstore, P 2,367.80. Received a promissory note from Mr. Magno for repair service rendered P15,500. Secured a Loan from PNB, P120,000 payable in 3 years. Issued a 60-day 6% promissory note to City Traders, P 3,000 for additional chairs bought. Paid advertisement P4,500 Paid the following bills: Meralco P8,400.38 Maynilad 1,234.50
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.
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