The cashier of a company bought one calculator for office used. The invoice was given to the accountant who recorded it as an asset of the business with monthly depreciation of 100 for 10 vears.
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.
![Name:
Score:
Grade/Section:
Activity 2: Identification
Directions: Identify the accounting principles that are being violated in
the situation below. Write your answer in your activity notebook.
1. The cashier of a company bought one calculator for office used. The invoice was given to
the accountant who recorded it as an asset of the business with monthly depreciation of
100 for 10 years.
2. Jollibee Food Corporation bought equipment from Japan for 150,000 yen and the said
amount was recorded in the balance sheet.
3. Maria bought a machine last 2010 for 150,000. Last December 31, 2020, the statement of
financial position of Maria shows the current value of the machine amounting to 50,000.
4. Upon recording of sales, the accountant notice that the duplicate sales invoice had two
amounts. The accountant records the amount of 50,000 instead of 45,000 in the sales
journal.
5. The owner-manager bought a computer for personal use. The invoice was given to the
bookkeeper and record as an asset of the business.
6. Liwliwa bought a computer for her newly open laundry business and an invoice was given
to the accountant and recorded in her salon business due to lack of available cash.
7. ESC Merchandise used the first-in-first-out method. The sales lady open and sold the
newly delivered condensed milk because there is no available in the display area and
going to the stock room is a little bit tiring.
8. Liwliwa deposited P10,000 to Ropali Corporation for the reservation of one unit of TMX
155 on January 31, 2021, and the unit will be delivered on February 14, 2021, as a gift to
her husband and paid for the remaining balance on the same date. The accountant credit
the unit as sales on January 31, 2021.
9. On February 15, 2021, Ropali Corporation paid to Petron the accumulated gas for the
motorcycle sale for January. On the same date, the accountant record the said gasoline
payment as expenses.
10. Juana is a newly hired accountant of a government institution. She adopts the accounting
practices and procedures of the previous private institution she came from since it is more
convenient for her.
PARENTS/GUARDIAN SIGNITURE OVER PRINTED NAME
2022.02.18 11:34](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a49d2b5-be93-4e9b-8518-841a43839a2d%2F792bd5b6-ae40-4ce2-8bc0-d5b16f99c1a6%2Fauu1p5r_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)