The transaction that follow took place at Cedar Hill Recreation and Sports Arena during September 20X1. This firm has indoor courts where customers can play tennis for a fee. It also rents equipment and offers tennis lessons. Instructions Record each transactionin the general journal, using the following chart of accounts. Bsure to number the journal page 1 and to write the year at the top of the Date column. Include a description for each entry.
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 transaction that follow took place at Cedar Hill Recreation and Sports Arena during September 20X1. This firm has indoor courts where customers can play tennis for a fee. It also rents equipment and offers tennis lessons.
Instructions Record each transactionin the general journal, using the following chart of accounts. Bsure to number the journal page 1 and to write the year at the top of the Date column. Include a description for each entry.
ASSETS
101 cASH REVENUE
111 Accounts 401 Fees Income
121 Supplies Expenses
134 Prepaid Rent 511 Equipment Repair Expense
141 Equipment 512 Rent Expense
LIABILITIES 513 sALARIES eXPENSE
202 aCCOUNTS PAYABLE 514 tELEPHONE eXPENSE
Owner's Equity 517 Utilities Expense
301 Terry Pohlen, Capital
302 Terry Pohlen Drawing
Date Transactions
Sept. 1 Issued Check 1169 for $3,000 to pay the September rent
5 Performed Services for $8,000
6 Performed Services for $5,900 on credit.
10 Paid 1,150 for monthly telephone bill; issued check 1170
11 Paid for equipment repairs of 1,250 with check 1171
12 Received 2,500 on account from credit clients
15 Issued checks 1172-1177 for $6,200 for salaries
18 Issued check 1178 for 2,965 to purchase supplies
19 Purchased new tennis rackets for 5,250 on credit form the tennis supply shop; received invoice 3108, payable in 30 days.
20 Issued check 179 for $4,820 to purchase new nets. (Equip)
21 Received 1,500 on account from credit clients
21 Returned a damaged net and received a cash refund of 1,140
22 Performed services for 4,450 in cash
23 performed services for 7,050 on credit
26 issued check 1180 for 975 to purchase supplies
28 paid the monthly electric bill of 1,875 with check 1181
30 issued checks 1182-1187 for 6,200 for salaries
30 issued check 1188 for 7,500 cash to terry Pohlen for personal expenses
Analyze; If the company paid a bill for supplies on October 1, what check number would be included in the
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