The books of Laredo Placement Agency showed among others the following accounts heir balances as at December 31, 2009, its second year of operation: Cash Accounts Receivable Allowance for bad Debts 80,000 30,000 1,500 6,500 Notes Receivable Prepaid Insurance Car 3,750 365,000 22,500 Accumulated Depreciation Accounts Payable Notes Payable Laredo, Capital Laredo, Personal Placement Income 25,000 15,000 334,050 35,000 380,000 76,500 168,000 2,500 1,800 11,500 2,500 Rent Expense Salaries Expense Interest Income Interest Expense Gas & Oil Expense Supplies Expense The following information were given for you to be able to prepare the adjusting entries as of December 31. a. P1,000 worth of supplies are still unused at the end of the year. b. The car was purchased on March 31 of the previous year with an estimated salvage value of P65,000.Hint: Determine annual depreciation based on the accumulated depreciation provided in the year 2008. . Prepaid insurance represents a balance of a one year premium expiring Feb. 28, 2010. U The note was received from the customer on November 16, 2009 for 60 days at 24% interest. * Salaries of 4 workers and clerks amounted to P800 per day from Monday to Saturday and payable every Monday. The next payroll date is January payroll from December 28 to January 2. f. covering the previous week All advance payment for placement fee of P30,000 was included in the income account. &The company makes it a policy of providing bad debts based on 1% of the yearly revenue. Required: Journalize the adjusting entries.
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.
10 column accounting worksheet, thank you!
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