The following selected transactions were completed by Green Lawn Supplies Co., which sells iriation supplies primarily to wholesalers and occasionally to retail customers: Judy 1. Sold merchandise on account to Landscapes Co., $15,500, terms FOB shipping point, rveom. The cost of merchandise sold was s9,300. 2. Sold merchandise for $19,700 plus 5% sales tax to retail cash customers. The cost of merchandise sold was $12,800. 5. Sold merchandse on accourt to Peacock Company, $32,600, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $21,200. 8. Sold merchandise for s8,300 plus 8% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $5,000. 13. Sold merchandise to customers who used MasterCard cards, $5,000. The cost of merchandise sold was s3,200. 14. Sold merchandise on account to Loeb Co, $13,200, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $7,800. 15. Received chek for amourt due from Peacock Company for sale on July 5. 16. Issued credit memo for $2,000 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,100. 18. Sold merchandise on account to Jennings Company, $5,500, terms roB shipping point, 2/10, r/30. Paid $260 for freight and added it to the invoice. The cost of merchandise sold was $3,300. 24. Received check for amount due from Loeb Co. for sale on July 14 less credt memo of July 16. 28. Received check for amrourt due from Jernings Company for sale of July 18. 31. Paid Black Lab Delivery Service s1,870 for merchandise delivered during July to customers under shipping terms of FOB destination. 31. Received chek for amourt due from Landscapes Co. for sale of July 1. Aug. 3. Paid Hays Federal Bank s960 for service fees for handing MasterCard and VISA sales during July 10. Paid $1,900 to state sales tax division for taxes owed on sales. Required: Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction, if no ertry is required, leave the entry box blank.
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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