The following are independent situations. a. A company orders and receives 10 personal computers for office use for which it signs a note promising to pay $25,000 within three months. b. A company purchases for $21,000 cash a new delivery truck that has a list ("sticker") price of $24,000. c. A women's clothing retailer orders 30 new display stands for $300 each for future delivery. d. A new company is formed and issues 100 shares of stock for $12 per share to investors. e. A company purchases a piece of land for $50,000 cash. An appraiser for the buyer valued the land at $52,500. f. The owner of a local company uses a personal check to buy a $10,000 car for personal use. Answer from the company's point of view. g. A company borrows $2,000 from a local bank and signs a six-month note for the loan. h. A company pays $1,500 owed on its 10-year notes payable (ignore interest). Required: 1. Indicate titles of the appropriate accounts, if any, affected in each of the preceding events. 2-a. At what amount would you record the delivery truck in (b)? 2-b. At what amount would you record the piece of land in (e)? 2-c. What measurement principle are you applying? 3-a. What reasoning did you apply in (c)? 3-b. For (1), what accounting concept did you apply? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Received Notes Payable (long-term) X Equipment Cash X Equipment No Transaction (a) (b) (c) (d) Common Stock (e) Cash (f) No Transaction (g) Notes Payable (short-term) (h) Cash Req 2C Indicate titles of the appropriate accounts, if any, affected in each of the preceding events. (If no entry is required for a transaction/event select "No transaction" in the first account field.) Given No Transaction x Cash X Land ✓No Transaction Cash Notes Payable (short-term) Req 3A < Req 1 X Req 3B X Req 2A > *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
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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