The cash payments and purchases journals for Magnolia Landscaping follow. The accounts payable control account has a June 1, 20Y1, balance of $3,590, consisting of an amount owed to Augusta CASH PAYMENTS JOURNAL Page 31 Other Accounts Post Accounts Payable Cash Date Ck. No. Account Debited Ref. Dr. Dr. Cr. 20Υ1 June 4 203 Augusta Sod Co. 3,590 3,590 June 5 204 Utilities Expense 54 710 710 June 15 205 Home Centers Lumber Co. 8,390 8,390 June 24 206 Nu Lawn Fertilizer 1,460 1,460 June 30 710 13,440 14,150 (V) (21) (11) PURCHASES JOURNAL Page 22 Accounts Landscaping Other Post Payable Supplies Accounts Post Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount 20Υ1 Home Centers Lumber Co. 8,390 June 3 8,390 June 7 Concrete Equipment Co. 10,790 Equipment 18 10,790 June 14 Nu Lawn Fertilizer 1,460 1,460 June 24 Augusta Sod Co. 10,380 10,380 June 29 Home Centers Lumber Co. 13,570 13,570 June 30 44,590 33,800 10,790 (21) (14) (V) Prepare a schedule of the accounts payable creditor balances. If an amount is zero, enter "0".
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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