The following amounts summarize the financial position of Little Green Dog Inc. on May 31, 202X Assets Computers (net) 0 Cash + Balance 3520 Accounts Receivable 1760 + Supplies 550 + Land = 14300 Liabilities Note Accounts Payable Payable 0 9460 June 5: Paid $440 for the current month's office rent. June 9: The business was invoiced for a $3300 purchase of office supplies. June 13: Performed services for a client and received $9900. June 20: Declared and paid a cash dividend of $1650 June 23. Received $220 from a customer that was billed last month. June 25: Paid $3850 of a bill received earlier in the month. June 30. Billed a client for services rendered, $4400 + + Salaries Interest Payable Payable 0 0 + + + Shareholders' Equ Reta Earn 56 Common Shares 5060 During June 202X, the business completed these transactions: June 1: Received a cash investment totalling $9900 in exchange for common shares. June 1: Purchased three computers. The company paid $2475 in cash and took out a bank loan of $6325 to cover the remaining balance owing. T loan bears interest of 10% to be paid on June 1, next year. The computers are expected to last 5 years. June 30: A physical count received that $1760 worth of supplies are still on hand. June 30: Paid $880 for an advertising campaign that had been run during the month. Employee salaries were also accrued. Employees work 5 days each week and are paid $3000 in total every other Friday. The month ended on a Wednesday. Employees were last paid 2 weeks ann
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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