Saenz Company uses a voucher system in which it records invoices at the gross amount. The following vouchers were issued during February and were unpaid on March 1: Voucher Number Company For Date of Voucher Amount 1729 Kipley Company Merchandise, FOB destination Feb. 26 $3,436 1732 J. R. Steven Merchandise, FOB destination Feb. 28 4,710 The following transactions were completed during March: Mar. 3 Issued voucher no. 1734 in favor of Larry Company for March rent, $1,220. 3 Issued Ck. No. 1829 in payment of voucher no. 1734, $1,220. 5 Bought merchandise on account from Lorenzo, Inc., $3,890; terms 2/10, n/30; FOB shipping point; freight prepaid and added to the invoice, $72 (total, $3,962). Issued voucher no. 1735. 5 Issued Ck. No. 1830 in payment of voucher no. 1729, $3,401.64 ($3,436 less 1 percent cash discount). 9 Issued voucher no. 1736 in favor of Mario Electric Company for electric bill, $216. 9 Issued Ck. No. 1831 in payment of voucher no. 1736, $216. 9 Issued Ck. No. 1832 in payment of voucher no. 1732, $4,615.80 ($4,710 less 2 percent cash discount). 13 Issued Ck. No. 1833 in payment of voucher no. 1735, less the cash discount, $3,884.20. Recall that the freight portion is not eligible for discount. 16 Bought merchandise on account from McGinnis Manufacturing Company, $6,260; terms 2/10 EOM; FOB destination. Issued voucher no. 1737. 25 Issued voucher no. 1738 for note payable previously recorded in the general journal: principal, $4,000, plus $30 interest. The note is payable to the Keller State Bank. 25 Issued Ck. No. 1834 in payment of voucher no. 1737, $6,134.80 ($6,260 less 2 percent cash discount). 31 Issued voucher no. 1739 for wages payable, $4,985, in favor of the payroll bank account. (Assume that the payroll entry was previously recorded in the general journal.) 31 Paid voucher no. 1739 by issuing Ck. No. 1835, $4,985, payable to Payroll Bank Account. Required Using the voucher issue date, enter the unpaid invoices in the voucher register (page 65) beginning with voucher no. 1729. Then draw double lines across all columns to separate the vouchers of February from those of March. Record the transactions for March in the voucher register. Also record the appropriate transactions in the check register (page 71). Total and rule the voucher register and the check register. Prove the equality of the debits and credits in the voucher register and the check register. Rationale
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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Saenz Company uses a voucher system in which it records invoices at the gross amount. The following vouchers were issued during February and were unpaid on March 1:
Voucher Number Company For Date of Voucher Amount 1729 Kipley Company Merchandise, FOB destination Feb. 26 $3,436 1732 J. R. Steven Merchandise, FOB destination Feb. 28 4,710 The following transactions were completed during March:
Mar. 3 Issued voucher no. 1734 in favor of Larry Company for March rent, $1,220. 3 Issued Ck. No. 1829 in payment of voucher no. 1734, $1,220. 5 Bought merchandise on account from Lorenzo, Inc., $3,890; terms 2/10, n/30; FOB shipping point; freight prepaid and added to the invoice, $72 (total, $3,962). Issued voucher no. 1735. 5 Issued Ck. No. 1830 in payment of voucher no. 1729, $3,401.64 ($3,436 less 1 percent cash discount). 9 Issued voucher no. 1736 in favor of Mario Electric Company for electric bill, $216. 9 Issued Ck. No. 1831 in payment of voucher no. 1736, $216. 9 Issued Ck. No. 1832 in payment of voucher no. 1732, $4,615.80 ($4,710 less 2 percent cash discount). 13 Issued Ck. No. 1833 in payment of voucher no. 1735, less the cash discount, $3,884.20. Recall that the freight portion is not eligible for discount. 16 Bought merchandise on account from McGinnis Manufacturing Company, $6,260; terms 2/10 EOM; FOB destination. Issued voucher no. 1737. 25 Issued voucher no. 1738 for note payable previously recorded in the general journal: principal, $4,000, plus $30 interest. The note is payable to the Keller State Bank. 25 Issued Ck. No. 1834 in payment of voucher no. 1737, $6,134.80 ($6,260 less 2 percent cash discount). 31 Issued voucher no. 1739 for wages payable, $4,985, in favor of the payroll bank account. (Assume that the payroll entry was previously recorded in the general journal.) 31 Paid voucher no. 1739 by issuing Ck. No. 1835, $4,985, payable to Payroll Bank Account. Required
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Using the voucher issue date, enter the unpaid invoices in the voucher register (page 65) beginning with voucher no. 1729. Then draw double lines across all columns to separate the vouchers of February from those of March.
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Record the transactions for March in the voucher register. Also record the appropriate transactions in the check register (page 71).
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Total and rule the voucher register and the check register.
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Prove the equality of the debits and credits in the voucher register and the check register.
Rationale
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