The following events occurred. a. On August 31, 12 new members joined and paid the annual membership fee in cash. The memberships do not begin until September 1. b. For the week ended September 11, LTC provided 225 court-hours of rental services for members and collected its fees in cash. c. On September 13, LTC purchased and received tennis balls and other supplies. The regular retail price was $325, but LTC negotiated a lower amount ($300) that is to be paid in October. d. On September 15, LTC paid $2,500 to employees for the hours they worked from September September 1 to 15. e. For the two weeks ended September 25, LTC provided 392 court-hours for members and collected its fees in cash. On September 26, LTC's courts were used for a member's birthday party. LTC expects the member to pay the special event booking fee of $225 on Saturday, October 2. g. On September 27, LTC wrote a $400 check to an advertising company to prepare advertising flyers that will be inserted in local newspapers on October 1. h. On September 29, LTC received $225 on account for the member's birthday party that was held on September 26. On September 30, LTC submitted its electricity and natural gas meter readings online. According to the suppliers' Websites, the total charges for the month will be $350. This amount will be paid on October 17 through a preauthorized online payment. 2. Prepare journal entries to record the August and September events described above. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
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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Lakewood Tennis Club (LTC) operates an indoor tennis facility. The company chargès a $175 annual membership fee plus
a member rental rate of $18 per court per hour. LTC's fiscal year-end is August 31. LTC's revenue recognition policy is
described in its financial statement notes as follows:
Revenue Recognition LTC generates revenue from two sources. Annual membership fees arise from providing 12 months
of services to members, so they are reported as membership revenue each month as these services are provided. Court
rental fees are generated by renting courts each day, so they are reported as service revenue when courts are used by
members.
The following events occurred.
a. On August 31, 12 new members joined and paid the annual membership fee in cash. The memberships do not begin
until September 1.
b. For the week ended September 11, LTC provided 225 court-hours of rental services for members and collected its fees
in cash.
c. On September 13, LTC purchased and received tennis balls and other supplies. The regular retail price was $325, but
LTC negotiated a lower amount ($300) that is to be paid in October.
d. On September 15, LTC paid $2,500 to employees for the hours they worked from September September 1 to 15.
e. For the two weeks ended September 25, LTC provided 392 court-hours for members and collected its fees in cash.
On September 26, LTC's courts were used for a member's birthday party. LTC expects the member to pay the special
event booking fee of $225 on Saturday, October 2.
g. On September 27, LTC wrote a $400 check to an advertising company to prepare advertising flyers that will be inserted
in local newspapers on October 1.
h. On September 29, LTC received $225 on account for the member's birthday party that was held on September 26.
On September 30, LTC submitted its electricity and natural gas meter readings online. According to the suppliers'
Websites, the total charges for the month will be $350. This amount will be paid on October 17 through a preauthorized
online payment.
2. Prepare journal entries to record the August and September events described above. (If no entry is required for a
transaction/event, select "No Journal Entry Required" in the first account field.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fde883f2b-285d-4d55-8493-937a7e117d03%2F82437171-26ed-492a-b63a-a7afa6dde028%2F6aoe0em_processed.jpeg&w=3840&q=75)
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