The following events occurredin June: June 1: Owner contributed $50,000 in cash to the business. June 1: Owner purchased a company vehicle in the amount of $15,000. June 3:Owner took out a small business loan in the amount of $25,000. June 5:Owner paid rent for June, and prepaid office rent for a 6-month period to cover July through December at $1,195 per month. June 5:Owner paid business license fees in the amount of $250 to the county. June 5: Owner ordered office supplies, on account, in the amount of $750.00. June 6: Owner performed service for client on account in the amount of $1,000. June 9:Owner provided service for client in the amount of $1,500. Customer paid $750 at time of service. Client will be billed for the balance due. June 10:Owner paid $250 in advertising costs to the local paper. June 15: Owner recorded wages due to the part-time employee in the amount of $325. This will be paid on June 20. June 15:Owner prepaid business insurance to cover July through December at the rate of $125 per month. June 20:Owner paid wages due to part-time employee from period ending June 15. June 21: Owner paid for plumbing repairs in the office in the amount of $210. June 22: Owner withdrew $1,000 cash for personal use. June 23:Customer paid balance due from June 6 service in the amount of $1,000. June 25:Owner provided service to client in the amount of $800. Client paid at time of service. June 28: Owner paid balance due for office supplies purchase on June 5. June 29: Owner performed service for client on account in the amount of $2,225.00. June 30: Owner received telephone bill for month of June in the amount of $155 and recorded the expense. This bill will not be paid until July. June 30:Last day of pay period; owner owes part-time worker $325 for the June 16 through June 30 pay period. This will be paid on July 5. June 30: Record depreciation on vehicle at $250. Please show me what the income statement, statement of stockholders equity, and balance sheet would be. I just want to compare what I already put together :)
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 following events occurredin June:
June 1: Owner contributed $50,000 in cash to the business.
June 1: Owner purchased a company vehicle in the amount of $15,000.
June 3:Owner took out a small business loan in the amount of $25,000.
June 5:Owner paid rent for June, and prepaid office rent for a 6-month period to cover July through December at $1,195 per month.
June 5:Owner paid business license fees in the amount of $250 to the county.
June 5: Owner ordered office supplies, on account, in the amount of $750.00.
June 6: Owner performed service for client on account in the amount of $1,000.
June 9:Owner provided service for client in the amount of $1,500. Customer paid $750 at time of service. Client will be billed for the balance due.
June 10:Owner paid $250 in advertising costs to the local paper.
June 15: Owner recorded wages due to the part-time employee in the amount of $325. This will be paid on June 20.
June 15:Owner prepaid business insurance to cover July through December at the rate of $125 per month.
June 20:Owner paid wages due to part-time employee from period ending June 15.
June 21: Owner paid for plumbing repairs in the office in the amount of $210.
June 22: Owner withdrew $1,000 cash for personal use.
June 23:Customer paid balance due from June 6 service in the amount of $1,000.
June 25:Owner provided service to client in the amount of $800. Client paid at time of service.
June 28: Owner paid balance due for office supplies purchase on June 5.
June 29: Owner performed service for client on account in the amount of $2,225.00.
June 30: Owner received telephone bill for month of June in the amount of $155 and recorded the expense. This bill will not be paid until July.
June 30:Last day of pay period; owner owes part-time worker $325 for the June 16 through June 30 pay period. This will be paid on July 5.
June 30: Record
Please show me what the income statement, statement of
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