The following transactions occurred for Lantana Company during its first month of operations and have been recorded in the T-accounts below. a. Received $50,000 cash from Lantana, the sole proprietor. b. Purchased land for $20,000, paid $5,000 in cash and signed a 2-year note for the remainder. c. Bought $900 of supplies on account. d. Purchased $10,000 of equipment, paying cash. e. Paid $500 on account for supplies purchased in transaction (c). a. bal. b. bal. e. Cash 50,000 34,500 Land 20,000 20,000 Accounts Payable 500 Lantana, Capital 5,000 b. 10,000 d. 500 e. 900 C. 400 bal. 50,000 a. 50.000 bal. C. bal. d. bal. Supplies 900 9.00 Equipment 10,000 10.000 Note Payable 15,000 b. 15.000 bal.
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.
![1
2
3
A
B
18 b.
19
20 bal.
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31
e.
The following transactions occurred for Lantana Company during its first month of operations and have been recorded in the
T-accounts below.
4
5
a. Received $50,000 cash from Lantana, the sole proprietor.
6
b. Purchased land for $20,000, paid $5,000 in cash and signed a 2-year note for the remainder.
7
c. Bought $900 of supplies on account.
8 d. Purchased $10,000 of equipment, paying cash.
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e. Paid $500 on account for supplies purchased in transaction (c).
10
11
12 a.
13
14
15 bal.
16
17
Cash
50,000
34,500
Land
20,000
20,000
C
Accounts Payable
500
DE F
Lantana, Capital
5,000 b.
10,000 d.
500 e.
900 c.
400 bal.
50,000 a.
50,000 bal.
C.
bal.
G
d.
bal.
Supplies
900
900
Equipment
10,000
10,000
H
Note Payable
15,000 b.
I
15,000 bal.
J
K
L
M
N
O
P
Q
R
S
▲](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F28cefb81-7cf9-48e6-bd36-6891739f4821%2Fc2ff2be6-d33e-4fa3-9ffb-c2e24d8dae82%2Fwy6f4ww_processed.png&w=3840&q=75)
![31
32 Required:
33 Using the T-account BALANCES and the information in the transactions, prepare a classified balance sheet for Lantana Company.
34 Note: Use cell references to the T-account titles to complete columns B and G. Use cell references to the T-account balances and
35 formulas to complete columns C and H.
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45 Long-term Assets
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Current Assets
Total Current Assets
Total Long-term Assets
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54 Total Assets
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Assets
LANATANA COMPANY
Balance Sheet
At December 31
Current Liabilities
Liabilities and Equity
Total Current Liabilities
Long-term Liabilities
Total Long-term Liabilities
Total Liabilities
Owners' Equity
Total Owners' Equity
Total Liabilities and Equity
10](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F28cefb81-7cf9-48e6-bd36-6891739f4821%2Fc2ff2be6-d33e-4fa3-9ffb-c2e24d8dae82%2Fthsyc5r_processed.png&w=3840&q=75)
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