The trial balance of Irene’s Laundry on June 30 is shown below: IRENE’S COIN LAUNDRY Trial Balance June 30, 2015 Account No. Account Title Debit Credit 101 Cash P 8,750 112 Accounts Receivable 2,320 126 Supplies 1,900 157 Equipment 9,000 201 Accounts Payable P 800 206 Notes Payable 5,500 301 Irene Bora, Capital 15,670 Total P 21, 970 P 21,970 The July transactions were as follows: July 5 Received P850 cash from customers for services rendered 10 Billed customers for services performed, P 6,300 15 Paid Salaries of employees, P1,400 20 Paid P2,000 cash to creditors for the notes payable 21 Received P250 for services rendered on cash basis 26 Purchased supplies on account, at a cost of P350 27 Paid P250 for the July 26 transaction 29 Withdrew P600 cash for personal use 30 Paid utilities P900 31 Paid salaries of employees, P1,400 Additional Information Provision should be made for the following additional accounts, No. 306, Irene Bora, Drawings, No. 426 Laundry Revenue, No. 726 Salaries Expense, No. 732 Utilities Expense, and No. 802 Revenue and Expense Summary. Instructions: Create the answer sheets for and submit the following: Trial Balance Income Statement Balance Sheet
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
IRENE’S COIN LAUNDRY
Trial Balance
June 30, 2015
|
Account No. |
Account Title |
Debit |
Credit |
|
101 |
Cash |
P 8,750 |
|
|
112 |
|
2,320 |
|
|
126 |
Supplies |
1,900 |
|
|
157 |
Equipment |
9,000 |
|
|
201 |
Accounts Payable |
|
P 800 |
|
206 |
Notes Payable |
|
5,500 |
|
301 |
Irene Bora, Capital |
|
15,670 |
|
|
Total |
P 21, 970 |
P 21,970 |
The July transactions were as follows:
|
July |
5 |
Received P850 cash from customers for services rendered |
|
|
10 |
Billed customers for services performed, P 6,300 |
|
|
15 |
Paid Salaries of employees, P1,400 |
|
|
20 |
Paid P2,000 cash to creditors for the notes payable |
|
|
21 |
Received P250 for services rendered on cash basis |
|
|
26 |
Purchased supplies on account, at a cost of P350 |
|
|
27 |
Paid P250 for the July 26 transaction |
|
|
29 |
Withdrew P600 cash for personal use |
|
|
30 |
Paid utilities P900 |
|
|
31 |
Paid salaries of employees, P1,400 |
Additional Information
Provision should be made for the following additional accounts, No. 306, Irene Bora, Drawings, No. 426 Laundry Revenue, No. 726 Salaries Expense, No. 732 Utilities Expense, and No. 802 Revenue and Expense Summary.
Instructions: Create the answer sheets for and submit the following:
- Trial Balance
- Income Statement
Balance Sheet - Closing Entries
- Post-Closing Trial Balance
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