. In the T accounts, record the following transactions of Potter Pool Services for June, identifying each entry by number: Shareholders invested $12,500 cash in the business by purchasing common stock. Purchased supplies on account, $6,250. Paid operating expenses, $5,500. Billed clients for fees, $7,440. Received cash from cash clients, $4,700. Paid creditors on account, $1,400. Received $3,100 from clients on account
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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a. In the T accounts, record the following transactions of Potter Pool Services for June, identifying each entry by number:
- Shareholders invested $12,500 cash in the business by purchasing common stock.
- Purchased supplies on account, $6,250.
- Paid operating expenses, $5,500.
- Billed clients for fees, $7,440.
- Received cash from cash clients, $4,700.
- Paid creditors on account, $1,400.
- Received $3,100 from clients on account.
- Paid $1,500 cash dividends.
Cash fill in the blank ae5b68fd6029fa1_2 fill in the blank ae5b68fd6029fa1_4 fill in the blank ae5b68fd6029fa1_6 fill in the blank ae5b68fd6029fa1_8 fill in the blank ae5b68fd6029fa1_10 fill in the blank ae5b68fd6029fa1_12 Bal. fill in the blank ae5b68fd6029fa1_13
Accounts Receivable fill in the blank ae5b68fd6029fa1_15 fill in the blank ae5b68fd6029fa1_17 Bal. fill in the blank ae5b68fd6029fa1_18
Supplies fill in the blank ae5b68fd6029fa1_20
Accounts Payable fill in the blank ae5b68fd6029fa1_22 fill in the blank ae5b68fd6029fa1_24 Bal. fill in the blank ae5b68fd6029fa1_25
Common Stock fill in the blank ae5b68fd6029fa1_27
Dividends fill in the blank ae5b68fd6029fa1_29
Professional Fees fill in the blank ae5b68fd6029fa1_31 fill in the blank ae5b68fd6029fa1_33 Bal. fill in the blank ae5b68fd6029fa1_34
Operating Expenses fill in the blank ae5b68fd6029fa1_36 Potter Pool ServicesTrial BalanceJune 30b. Prepare a
trial balance as of June 30 for Potter Pool Services.- Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - fill in the blank 70bea5fae044fad_25 fill in the blank 70bea5fae044fad_26 c. Assuming that supplies expense (which has not been recorded) amounts to $1,500 for June, determine the following:
(1) Net income for the month. $fill in the blank e1f94afaa010f83_1 (2) Stockholders' equity as of June 30.$fill in the blank e1f94afaa010f83_2
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