Vince Rockford practices medicine under the business title Vince Rockford, M.D., P.C. During March, the medical practice completed the following transactions: Mar 1 Rockford deposited $74,000 cash in the business bank account. The business issued common stock to Rockford. 5 Paid monthly rent on medical equipment, $560. 9 Paid $24,000 cash to purchase land for an office site. 10 Purchased supplies on account, $1,300. 19 Borrowed $19,000 from the bank for business use. Rockford signed a note payable to the bank in the name of the business. 22 Paid $900 on account. 31 Revenues earned during the month included $7,100 cash and $4,700 on account. 31 Paid employees' salaries $2,000, office rent $1,600, and utilities $320. Make a single compound entry. 31 Paid cash dividends of $8,000. The business uses the following accounts: Cash, Accounts receivable, Supplies, Land, Accounts payable, Notes payable, Common stock, Dividends, Service revenue, Salary expense, Rent expense, and Utilities expense. Requirements 1. Journalize each transaction, as shown for March 1. Explanations are not required. 2. Post the transactions to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal, as shown in the chapter. 3. Prepare the trial balance of Vince Rockford, M.D., P.C., at March 31, 2022.
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.
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