Purchases and Cash Payments Transactions Emily Frank owns a small retail business called Frank’s Fantasy. The cash account has a balance of $20,900 on July 1. The following transactions occurred during July: July 1 Issued Check No. 414 in payment of July rent, $2,400. 1 Purchased merchandise on account from Tilly's Toys, Invoice No. 311, $3,000, terms 2/10, n/30. 3 Purchased merchandise on account from Scheer & Company, Invoice No. 812, $3,600, terms 1/10, n/30. 5 Returned merchandise purchased from Tilly's Toys, receiving a credit memo on the amount owed, $600. 8 Purchased merchandise on account from Donna's Dolls, Invoice No. 139, $2,940, terms 2/10, n/30. 11 Issued Check No. 415 to Tilly's Toys for merchandise purchased on account, less return of July 5 and less 2% discount. 13 Issued Check No. 416 to Scheer & Company for merchandise purchased on account, less 1% discount. 15 Returned merchandise purchased from Donna's Dolls, receiving a credit memo on the amount owed, $450. 18 Issued Check No. 417 to Donna's Dolls for merchandise purchased on account, less return of July 15 and less 2% discount. 25 Purchased merchandise on account from Applied Business, Invoice No. 489, $2,740, terms n/30. 26 Purchased merchandise on account from Tilly's Toys, Invoice No. 375, $2,180, terms 2/10, n/30. 29 Purchased merchandise on account from Scheer & Company, Invoice No. 883, $3,520, terms 1/10, n/30. Required: 1. Enter the transactions starting with page 16 of a general journal. Enter the posting references when you complete part 2.
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.
Purchases and Cash Payments Transactions
Emily Frank owns a small retail business called Frank’s Fantasy. The cash account has a balance of $20,900 on July 1. The following transactions occurred during July:
| July 1 | Issued Check No. 414 in payment of July rent, $2,400. | |
| 1 | Purchased merchandise on account from Tilly's Toys, Invoice No. 311, $3,000, terms 2/10, n/30. | |
| 3 | Purchased merchandise on account from Scheer & Company, Invoice No. 812, $3,600, terms 1/10, n/30. | |
| 5 | Returned merchandise purchased from Tilly's Toys, receiving a credit memo on the amount owed, $600. | |
| 8 | Purchased merchandise on account from Donna's Dolls, Invoice No. 139, $2,940, terms 2/10, n/30. | |
| 11 | Issued Check No. 415 to Tilly's Toys for merchandise purchased on account, less return of July 5 and less 2% discount. | |
| 13 | Issued Check No. 416 to Scheer & Company for merchandise purchased on account, less 1% discount. | |
| 15 | Returned merchandise purchased from Donna's Dolls, receiving a credit memo on the amount owed, $450. | |
| 18 | Issued Check No. 417 to Donna's Dolls for merchandise purchased on account, less return of July 15 and less 2% discount. | |
| 25 | Purchased merchandise on account from Applied Business, Invoice No. 489, $2,740, terms n/30. | |
| 26 | Purchased merchandise on account from Tilly's Toys, Invoice No. 375, $2,180, terms 2/10, n/30. | |
| 29 | Purchased merchandise on account from Scheer & Company, Invoice No. 883, $3,520, terms 1/10, n/30. |
Required:
1. Enter the transactions starting with page 16 of a general journal. Enter the posting references when you complete part 2.
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