Use the journals and ledgers that follow. Total the journals. Post the transactions to the subsidiary ledger and (using T-accounts) to the general ledger accounts. Then prepare a schedule of accounts receivable. Round your answers to two decimal places. If an amount box does not require an entry, leave it blank. SALES JOURNAL Page: 79
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.
Use the journals and ledgers that follow. Total the journals.
| SALES JOURNAL | Page: 79 | |||||
| Date | Account | Invoice No. |
Ref. | DR Accts. Receivable CR Sales |
DR COGS CR Merchandise Inventory |
|
| 2019 | ||||||
| Feb. 4 | Evert Company | 17433 | E123 | 2,000.00 | ||
| Feb. 8 | King Inc. | 17434 | K331 | 775.30 | ||
| Feb. 14 | Martina Inc. | 17435 | M132 | 2,301.99 | ||
| Feb. 16 | Shriver Company | 17436 | S101 | 700.00 | ||
| Total | fill in the blank 1 |
| CASH RECEIPTS JOURNAL | Page: 102 | ||||||
| Date | Account | Invoice No. |
Ref. | Cash DR |
Sales Discounts DR |
Accounts Receivable, Sales, or Other Accounts CR |
|
| 2019 | |||||||
| Feb. 1 | Cash Sales | 475.00 | 475.00 | ||||
| Feb. 5 | Payment from Evert Co. | 17433 | 1,960.00 | 40.00 | 2,000.00 | ||
| Feb. 15 | Bank loan | 230 | 1,500.00 | 1,500.00 | |||
| Feb. 21 | Payment from Shriver Co. | 17436 | 700.00 | 700.00 | |||
| Total | fill in the blank 2 | fill in the blank 3 | fill in the blank 4 |
| Accounts Receivable Subsidiary Ledger | |||||
|---|---|---|---|---|---|
| Account: | Evert Company | Account #E123 | |||
| DATE | ITEM | POST. REF. | TRANSACTION | BALANCE | |
| DEBIT | CREDIT | DEBIT | |||
| Beginning Balance | |||||
| Feb. 4 | Sale |
|
fill in the blank 6 | fill in the blank 7 | fill in the blank 8 |
| Feb. 5 | Payment |
|
fill in the blank 10 | fill in the blank 11 | fill in the blank 12 |
| Account: | King Inc. | Account #K331 | |||
| DATE | ITEM | POST. REF. | TRANSACTION | BALANCE | |
| DEBIT | CREDIT | DEBIT | |||
| Beginning Balance | |||||
| Feb. 8 | Sale |
|
fill in the blank 14 | fill in the blank 15 | fill in the blank 16 |
| Account: | Martina Inc. | Account #M132 | |||
| DATE | ITEM | POST. REF. | TRANSACTION | BALANCE | |
| DEBIT | CREDIT | DEBIT | |||
| Beginning Balance | |||||
| Feb. 14 | Sale |
|
fill in the blank 18 | fill in the blank 19 | fill in the blank 20 |
| Account: | Shriver Company | Account #S101 | |||
| DATE | ITEM | POST. REF. | TRANSACTION | BALANCE | |
| DEBIT | CREDIT | DEBIT | |||
| Beginning Balance | |||||
| Feb. 16 | Sale |
|
fill in the blank 22 | fill in the blank 23 | fill in the blank 24 |
| Feb. 21 | Payment |
|
fill in the blank 26 | fill in the blank 27 | fill in the blank 28 |
| Cash | |||
|---|---|---|---|
| fill in the blank 29 |
| Accounts Receivable | |||
|---|---|---|---|
| fill in the blank 30 | fill in the blank 31 |
| Notes Payable | |||
|---|---|---|---|
| fill in the blank 32 |
| Sales | |||
|---|---|---|---|
| fill in the blank 33 | |||
| fill in the blank 34 |
| Sales Discounts | |||
|---|---|---|---|
| fill in the blank 35 |
| Schedule of Accounts Receivable February 28, 2019 |
|
| King Inc. | $fill in the blank 36 |
| Martina Inc. | fill in the blank 37 |
| Total | $fill in the blank 38 |
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