Rivera Roofing Company, owned by Revna Rivera, began operations in July and completed these transactions during that first month of operations. July 1 Reyna Rivera
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.
Rivera Roofing Company, owned by Revna Rivera, began operations in July and completed these transactions during that first month of operations.
July 1 Reyna Rivera invested $80.000 cash in the company in exchange for its common stock.
July 2 The company rented office space and paid $700 cash for the July rent.
July 3 The company purchased roofing equipment for $5,000 by paying $1,000 cash and agreeing to pay the $4,000 balance in 30 days.
July 6 The company purchased office supplies for $600 cash.
July 8 The company completed work for a customer and immediately collected $7,600 cash for the work
July 10 The company purchased $2,300 of office equipment on credit.
July 15 The company completed work for a customer on credit in the amount of 8,200
July 17 The company purchased 55,100 of office supplies on credit.
July 23. The company paid $2,300 cash for the office equipment purchased on July 10.
July 25 The company billed a customer $5,000 for work completed: the balance is due in 30 days.
July 28 The company received $8,200 cash for the work completed on July 15
July 30 The company paid an assistant's salary of $1,560 cash for this month
July 31. The company paid cash for this month’s utility bill.
July 31. The company paid $1,800 cash in dividends to the owner (sole shareholder).
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
