Sales and Purchase-Related Transactions for Seller and Buyer The following selected transactions were completed during June between Snipes Company and Beejoy Company: create a balance sheet for each date Instructions: 1. Illustrate the effects on the accounts and financial statements of recording the following transactions for Snipes Company. Identify each transaction by date. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. June 8. Snipes Company sold merchandise on account to Beejoy Company, $18,250, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $10,000. June 8. Snipes Company paid tr
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.
Sales and Purchase-Related Transactions for Seller and Buyer
The following selected transactions were completed during June between Snipes Company and Beejoy Company:
create a
Instructions:
1. Illustrate the effects on the accounts and financial statements of recording the following transactions for Snipes Company. Identify each transaction by date.
If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank.
June 8. Snipes Company sold merchandise on account to Beejoy Company, $18,250, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $10,000.
June 8. Snipes Company paid transportation costs of $400 for delivery of merchandise sold to Beejoy Company on June 8.
June 12. Beejoy Company returned merchandise with a selling price of $5,000 ($4,900 net of discount) purchased on June 8 from Snipes Company. The cost of the merchandise returned was $3,000.
June 23. Beejoy Company paid Snipes Company for purchase of June 8, less refund on return of June 12.
June 24. Snipes Company sold merchandise on account to Beejoy Company, $15,000, terms FOB shipping point, n/eom. The cost of the merchandise sold was $9,000.
June 30. Beejoy Company paid Snipes Company on account for purchase of June 24.
2. Illustrate the effects on the accounts and financial statements of recording the following transactions for Beejoy Company. Identify each transaction by date.
June 8. Snipes Company sold merchandise on account to Beejoy Company, $18,250, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $10,000.
June 8. Snipes Company paid transportation costs of $400 for delivery of merchandise sold to Beejoy Company on June 8.
June 12. Beejoy Company returned merchandise with a selling price of $5,000 ($4,900 net of discount) purchased on June 8 from Snipes Company. The cost of the merchandise returned was $3,000.
June 23. Beejoy Company paid Snipes Company for purchase of June 8, less refund on return of June 12.
June 24. Snipes Company sold merchandise on account to Beejoy Company, $15,000, terms FOB shipping point, n/eom. The cost of the merchandise sold was $9,000
June 26. Beejoy Company paid transportation charges of $375 on June 24 purchase from Snipes Company.
June 30. Beejoy Company paid Snipes Company on account for purchase of June 24.
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