The following selected transactions occurred during the month of October for Carlos Trading: PNT Oct. 1- Bought goods costing P 6,500 on credit from Marimar Trading terms 2/10, n/30. Sold merchandise on account to Billy Trading, P 5,000 terms 371O EOM. 3 Paid freight on the purchase made'last October 1, P 300. 4- Sold merchandise for cash P 12,600. 4 Paid freight on the above sale, P 256. 5- Bought goods with a list price of P 5,000 terms COD with trade discount of 8%. 6 - Received a 30-day 6% note from Cortez for merchandise sold, P 6,000. 6 - Bought tables on account from Lourdes Furniture, P 4,000 terms 3/20, n/40. 7 - Cash sales, P 12,500. 8- Cash purchases, P 8,400. 8 - Bought goods from Zorro Trading, P 10,000 terms 2/10 EOM. 8 - Issued a 60-day 6% note for P 2,000 for merchandise bought from Oca Trading 10 Bought goods from Alex Company, P 7,000 terms 3/10, 2/15, n/45. 11 Sold goods to Costa Enterprises, P 11,000 terms 1/10, n/30. 12 Received a cash refund for merchandise returned to a supplier, P 650. 13 Gave a cash refund to a customer for defective merchandise returned, P 800. 14 Bought merchandise from Rumars with a list price of P10,000 terms 2/10, n/30 with trade discount of 5% and 2%. Collected the account of Costa Enterprises in full (see transaction dated Oct. 11). 24 - Paid the account of Alex Company in full (see transaction dated Oct. 10). 25- Sold merchandise to Santos, terms COD with a list price of P 8,000 with trade discount of 10% and 5%, exclusive of freight charges of P 230. 25 - Returned defective tables to Lourdes Furniture (see transaction dated Oct. 6), P 500. 25 - Returned defective merchandise to Zoro Trading, P200 (see transaction dated Oct. 8). 27 - Paid the account of ZorO Trading in full (see transactions dated Oct. 8 and 25). 28 - Collected the note of Cortez together with the interest (see transaction dated Oct. 6). 28 Paid the note issued to Oca Trading in full together with the interest (see transaction dated Oct. 8). 29 Billy Trading returned goods, P 1,000 (see transaction dated Oct. 2). Billy Trading paid its account in full (see transactions dated Oct. 2 and 29). 21 30 REQUIRED: Journal entries (without explanation).
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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The following selected transactions occurred during the month of October for Carlos Trading: PNT Oct. 1- Bought goods costing P 6,500 on credit from Marimar Trading terms 2/10, n/30. Sold merchandise on account to Billy Trading, P 5,000 terms 371O EOM. 3 Paid freight on the purchase made'last October 1, P 300. 4- Sold merchandise for cash P 12,600. 4 Paid freight on the above sale, P 256. 5- Bought goods with a list price of P 5,000 terms COD with trade discount of 8%. 6 - Received a 30-day 6% note from Cortez for merchandise sold, P 6,000. 6 - Bought tables on account from Lourdes Furniture, P 4,000 terms 3/20, n/40. 7 - Cash sales, P 12,500. 8- Cash purchases, P 8,400. 8 - Bought goods from Zorro Trading, P 10,000 terms 2/10 EOM. 8 - Issued a 60-day 6% note for P 2,000 for merchandise bought from Oca Trading 10 Bought goods from Alex Company, P 7,000 terms 3/10, 2/15, n/45. 11 Sold goods to Costa Enterprises, P 11,000 terms 1/10, n/30. 12 Received a cash refund for merchandise returned to a supplier, P 650. 13 Gave a cash refund to a customer for defective merchandise returned, P 800. 14 Bought merchandise from Rumars with a list price of P10,000 terms 2/10, n/30 with trade discount of 5% and 2%. Collected the account of Costa Enterprises in full (see transaction dated Oct. 11). 24 - Paid the account of Alex Company in full (see transaction dated Oct. 10). 25- Sold merchandise to Santos, terms COD with a list price of P 8,000 with trade discount of 10% and 5%, exclusive of freight charges of P 230. 25 - Returned defective tables to Lourdes Furniture (see transaction dated Oct. 6), P 500. 25 - Returned defective merchandise to Zoro Trading, P200 (see transaction dated Oct. 8). 27 - Paid the account of ZorO Trading in full (see transactions dated Oct. 8 and 25). 28 - Collected the note of Cortez together with the interest (see transaction dated Oct. 6). 28 Paid the note issued to Oca Trading in full together with the interest (see transaction dated Oct. 8). 29 Billy Trading returned goods, P 1,000 (see transaction dated Oct. 2). Billy Trading paid its account in full (see transactions dated Oct. 2 and 29). 21 30 REQUIRED:
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