Requirement 1 -- July 1 purchase of supplies Credit Date Account Name Debit entry Requirement 2 -- July 31 supplies on-hand Requirement 3 -- "T" Account Analysis for July 31 adjusting entry "T" Account Analysis for Asset and Liability Accounts Account Name > Supplies (asset account) Debit Credit (1) What is the current balance? Reinen (3) What adjustment is required to adjust from the current balance to the should be balance? (2) What should be the balance? Requirement 4 -- July 31 supplies adjusting entry Date Account Name Debit Credit
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.
![Requirement 1 -- July 1 purchase of supplies
Credit
Date
Account Name
Debit
entry
Requirement 2 -- July 31 supplies on-hand
Requirement 3 -- "T" Account Analysis for July 31 adjusting entry
"T" Account Analysis for Asset and Liability Accounts
Account Name >
Supplies (asset account)
Debit
Credit
|(1) What is the current balance?
What adjustment is required to
adjust from the current balance
to the should be balance?
Regiren (3)
|(2) What should be the balance?
Requirement 4 -- July 31 supplies adjusting entry
Date
Account Name
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1fd1bd5d-f0ed-49e5-bfba-c19e64fbf32b%2Fdd0217bf-7f98-4f5b-904a-c4d39eec85d1%2Fx7p9o3l_processed.jpeg&w=3840&q=75)
![On July 1, 2021, Martha Jones started Martha's Auto Repair Shop, Inc. On that same day, Martha
purchased the following supplies for use in the repair shop:
Item
Unit of
Quantity
Purchased
Price per
Unit
Extended
Total Cost
Measure
Shop Towels
Rolls
Supplies a
120
$4
$480
Degreasing Fluid
Quarts
75
$9
$675
Gasket Sealer
Tubes
40
t1 -- July 1
$6
$240
Total $1,395
Account N
On July 1, Martha paid cash for the supplies and set the accounting policy that all supplies would
initially be recorded in the Supplies asset account.
At the end of July, Martha counted the supplies that were left and prepared the following listing:
Unit of
Quantity
Remaining
Item
Measure
ent 2 -- Ju
Shop Towels
Rolls
80
Degreasing Fluid
Quarts
65
Gasket Sealer
Tubes
32
At the end of August, Martha counted the supplies that were left and prepared the following listing:
ient 3 --
Quantity
Remaining
Unit of
Item
Measure
Shop Towels
Rolls
55
Degreasing Fluid
Quarts
48
Gasket Sealer
Tubes
22
The following is a partial list of the accounts in Martha's General Ledger. These are the only
accounts you need for this problem.
D Cash
D Supplies
D Supplies Expense](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1fd1bd5d-f0ed-49e5-bfba-c19e64fbf32b%2Fdd0217bf-7f98-4f5b-904a-c4d39eec85d1%2Ff7grxrb_processed.jpeg&w=3840&q=75)
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