Write the accounting equation of the following business transactions. A=L+OE R. Vitasa started his own bowling business called "RV Strikes Bowling Alley on February 1 of the current year. The following transactions occurred: Feb. 1- R.Vitasa deposited P4,000,000 cash in a bank account named after the business as initial investment of the business. 2-Acquired bowling equipment worth P 900,000 from Sports Unlimited paying P 500,000 cash and agreeing to pay the remaining balance in 30 days. 3-Purchased bowling gear for P 100.000 cash from Sports Unlimited. 5- Acquired furniture P 200, 000 at Home Depot, paying P 100.000 in cash and agreeing to pay balance at the end of the month. 6-Sent a bill to Nestle Corporation for bowling services rendered P 400,000. 7- Earned P 100,000 for bowling service rendered. 9-Received telephone bill from PLDT P 2,000. 10-Received P 200.000 as partial payment of Nestle Corporation for a bowling tournament 11-Paid tax of the business P 10.500 cash. 12-Received P 50,000 from customers. 15-Paid salaries of customer assistants and janitors P 110,000 16-Received P 50,000 from Nestle as additional payment of the account. 17-Paid P 200,000 to Sports Unlimited in advance to update existing accounts. 18- Vitasa withdrew P 10,000 from the business for personal use. 24- Vitasa deposited another P 500,000 in the business account as additional capital 26-Paid P 1,500 for full page newspaper advertisement 27-Acquired additional furniture worth P 20,000 from Home Depot to be paid in 30 days.
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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