The transactions completed by the MJW Company during January, its first month of operations, are listed below. Assume that MJW Company uses the following journals: Cash Receipts (CR), Cash Payments (CP), Revenue (R), Purchases (P), and General (G). Assume that it uses an Accounts Receivable and an Accounts Payable Subsidiary Ledgers as well as a General Ledger. Indicate by letters which journal would be used to record each transaction (a journal may be used multiple times). Also, indicate with a “Yes” (in the “Posting” column) if recording the entry requires a posting to a subsidiary ledger (note: there are only 5 of the 10 that require a posting to the subsidiary ledger). Journal Posting _____ ____ (1) Purchased equipment on account. _____ ____ (2) Issued an invoice to a customer. _____ ____ (3) Received a check from a customer for payment on account. _____ ____ (4) Issued check for advertising expense. _____ ____ (5) Issued check for a payment on account. _____ ____ (6) Issued check for cash purchase of supplies. _____ ____ (7) Issued check for salary. _____ ____ (8) Received cash for a sale. _____ ____ (9) Purchased supplies on account. _____ ____ (10) Issued check for rent.
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 transactions completed by the MJW Company during January, its first month of operations, are listed below. Assume that MJW Company uses the following journals: Cash Receipts (CR), Cash Payments (CP), Revenue (R), Purchases (P), and General (G). Assume that it uses an
|
Journal |
Posting |
|
|
|
_____ |
____ |
(1) |
Purchased equipment on account. |
|
_____ |
____ |
(2) |
Issued an invoice to a customer. |
|
_____ |
____ |
(3) |
Received a check from a customer for payment on account. |
|
_____ |
____ |
(4) |
Issued check for advertising expense. |
|
_____ |
____ |
(5) |
Issued check for a payment on account. |
|
_____ |
____ |
(6) |
Issued check for cash purchase of supplies. |
|
_____ |
____ |
(7) |
Issued check for salary. |
|
_____ |
____ |
(8) |
Received cash for a sale. |
|
_____ |
____ |
(9) |
Purchased supplies on account. |
|
_____ |
____ |
(10) |
Issued check for rent. |
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