The following accounts and their balances were taken from the books of Vales Mimeographing Services as of December 31, 2020 end of the accounting period. P 5,000 7,000 Cash on Hand Accounts Receivable Allowance for Bad Debts Notes Receivable 300 2,000 12,000 Mimeographing Equipment Accumulate Depreciation - Mimeo Equipment Furniture and Fixture Accumulated Depreciation -Furniture and Fixture Accounts Payable Notes Payable Bunny, Capital Bunny, Drawing Mimeo Income Salaries Expense Rent Expense Insurance Expense Utilities Expense Supplies Expense 1,200 5,000 500 6,000 1,000 14,800 1,500 25,000 8,000 3,000 1,000 300 4,000 P 48,800 Total 48,800 Additional Information: 1. Unexpired insurance was P160. 2. The allowance for depreciation for furniture and fixture should be increased to P600. 3. The allowance for bad debts should be increased by 5% if the outstanding Accounts Receivable. 4. The note was received on Dec. 1 at the interest of 10% of a 60-day tem Answer for Journal Dec 31 Prepaid Insurance 160.00 Insurance Expense 160.00 Depreciation Expense - Furniture & Fixture 100.00 Accumulated Depreciation- Furniture & Fixture 100.00 Bad Debts Expense 350.00 Allowance for Bad Debts 350.00 Interest Receivable 16.67 Interest Income 16.67 Required: 1. Prepare a 10-column worksheet
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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