PROBLEM 6-7A Megaffin's Repairs Work Sheet For Month Ended January 31, 20-- AL SALANI AONUSIMUNIS ARSID IRAL BALANE INOME STATEMENT MLANE SHLT ACCOUNT TITLE DEST CREDT DENT CHEDE DET CRED DEBT CREDT DEBT CPEDIT 1 Cash 2 Accounts Recelvable 3 Sepplies 3673 00 1450 00 70 0 00 90 0 00 3200 00 3673 00 1450 00 673 00 1450 00 300 00 230 00 400 0 670 00 3200 00 400 00 670 00 3200 0 4 Prepak Insurance 5 Delvery Equipment 6 Accum. Depr.-Dethvery Equpnent 7 Accounts Payable 8 Wages Payable 9 Don Megan, Capital 10 Dan Meguma, Drawing 55 00 55 00 1200 00 400 00 8000 00 55 00 6 1200 00 7 400 008 1200 00 400 00 8000 00 8000 009 1100 00 1100 00 1100 00 11 Repair Fees 12 Wages Expense 470000 4700 00 4700 00 11 1750 00 200 00 640 00 2150 00 200 00 640 00 300 00 5000 230 00 200 00 SS00 2150 00 200 0 640 00 300 00 00 00 12 13 Advertising Expeme 14 Rent Experse 13 14 15 Supplies Expese 300 00 15 16 Phone Expeme 50 00 50 00 16 230 00 17 irsurance Bxpense 18 Gas and ONI Expense 19 Depr. Exponse-Dowery tqupnent 20 Miscellanesus Epense 21 22 Netincorne 230 00 17 200 00 200 00 18 5500 19 E7 00 37 00 13 90 0 00 13 9o 00 37 00 985 00 14 35 5 00 14 355 00 862 00 47 00 00 10 493 00 9655 00 21 8 38 00 22 985 00 838 00 23 4700 00 470 00 10 493 00 10 4 9 3 00 23 24 24 26 27 26 27 29 30 30 Megaffin's Repairs Chart of Accounts Assets Revenues 101 Cash 401 Repair Fees 122 Accounts Receivable Supplies Prepaid Insurance Delivery Equipment Accum. Depr.–Delivery Equip. 141 Expenses 511 145 185 Wages Expense Advertising Expense Rent Expense Supplies Expense Phone Expense Insurance Expense Gas and Oil Expense Depr. Exp.-Delivery Equip. Miscellaneous Expense 512 185.1 521 523 Liabilities 525 Accounts Payable Wages Payable 202 535 219 538 541 Owner's Equity 311 549 Don Megaffin, Capital Don Megaffin, Drawing Income Summary 312 313
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.
CLOSING ENTRIES AND POST-CLOSING
work sheet in Problem 6-7A for Megaffin's Repairs. The trial balance
amounts (before adjustments) have been entered in the ledger accounts
provided in the working papers. If you are not using the working papers
that accompany this book, set up ledger accounts and enter these
balances as of January 31, 20--. A chart of accounts is provided attached.
REQUIRED
1. Journalize (page 10) and post the
2. Journalize (page 11) and post the closing entries.
3. Prepare a post-closing trial balance.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
