The company reported the following transactions during the month of June: Journal entry for all, $41,500 for both credits & debits June 1, 2026 Craig contributed $20,000 cash and a truck to the business with a fair market value of $14,000. Craig originally paid $25,000 for the truck. (record as one compound entry) June 5, 2026 Craig paid $300 for advertising in the local newspaper for the month of June. June 8, 2026 Craig purchased and received office supplies on account from Office Plus for $250. Record office supplies as an asset. June 22, 2026 Craig prepaid $1,200 for a one-year insurance policy. Policy begins July 1, 2022. June 25, 2026 Craig received and paid the monthly utility bill in the amount of $100 in cash. June 26, 2026 Craig received a check from Hotels R Cozy for $3,000 for a landscaping project that will begin on July 15, 2022. June 29, 2026 The company paid wages to the employees for the month of $1,250 June 30, 2026 The company received $2,000 in cash for services rendered this month AND Craig billed customers for services rendered in the amount of $2,500. (prepare a compound entry) June 30, 2026 Craig paid the amount due for the purchase of office supplies from June 8th. June 30, 2026 Craig withdrew $500 from the business for
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.
The company reported the following transactions during the month of June:
June 1, 2026 Craig contributed $20,000 cash and a truck to the business with a fair market value of $14,000. Craig originally paid $25,000 for the truck. (record as one compound entry)
June 5, 2026 Craig paid $300 for advertising in the local newspaper for the month of June.
June 8, 2026 Craig purchased and received office supplies on account from Office Plus for $250. Record office supplies as an asset.
June 22, 2026 Craig prepaid $1,200 for a one-year insurance policy. Policy begins July 1, 2022.
June 25, 2026 Craig received and paid the monthly utility bill in the amount of $100 in cash.
June 26, 2026 Craig received a check from Hotels R Cozy for $3,000 for a landscaping project that will begin on July 15, 2022.
June 29, 2026 The company paid wages to the employees for the month of $1,250
June 30, 2026 The company received $2,000 in cash for services rendered this month AND Craig billed customers for services rendered in the amount of $2,500. (prepare a compound entry)
June 30, 2026 Craig paid the amount due for the purchase of office supplies from June 8th.
June 30, 2026 Craig withdrew $500 from the business for personal use.
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