Toot Auto Supply distributes new and used automobile parts to local dealers throughout the Midwest. Toot’s credit terms are n/30. As of the end of business on October 31, the following accounts receivable were past due: Account Due Date Amount Avalanche Auto August 15 $12,000 Bales Auto October 4 2,400 Derby Auto Repair June 26 3,900 Lucky’s Auto Repair September 10 6,600 Pit Stop Auto September 24 1,100 Reliable Auto Repair July 2 9,750 Trident Auto August 25 1,800 Valley Repair & Tow May 23 4,000 Determine the number of days each account is past due as of October 31.
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.
Toot Auto Supply distributes new and used automobile parts to local dealers throughout the Midwest. Toot’s credit terms are n/30. As of the end of business on October 31, the following accounts receivable were past due:
| Account | Due Date | Amount |
|---|---|---|
| Avalanche Auto | August 15 | $12,000 |
| Bales Auto | October 4 | 2,400 |
| Derby Auto Repair | June 26 | 3,900 |
| Lucky’s Auto Repair | September 10 | 6,600 |
| Pit Stop Auto | September 24 | 1,100 |
| Reliable Auto Repair | July 2 | 9,750 |
| Trident Auto | August 25 | 1,800 |
| Valley Repair & Tow | May 23 | 4,000 |
Determine the number of days each account is past due as of October 31.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
