1. Directions Make a journal entry of Modern Laundry Centre using following the business transactions. Use a two-column journal. December 1 Jenny Toledo opened her small laundry shop with a legal trade name approved by the DTI as Modern Laundry Center. the business has been registered as non-VAT taxpayer. Jenny rented a space at Mercrdez Avenue, Sipalay City, Negros Occidental. The rental fee is P3,000 per month. She made the following initial investment: Cash P20,000 Three units of washing machine 45,000 Five units of electric iron 4,500 2 Bought detergents and other materials needed for washing of clothes, curtains, blankets, and related items from Goldymart as reflected in the cash invoice # 2144 amounting to R,800. 5 Rendered various laundry services to walk-in customers and issued several official receipts amounting to P7,300. 7 Paid the rent for the month of August 2020; the OR No. 844 issued by the owner of the property showed P 3,000. 10 Issued Charge Invoice No. 0001 in the amount of P38,000 to Sealey's Inn for various laundry services provided. 15 Paid the salaries of the laundry workers for the first half of December 2019; Voucher No. 005, as supported by the payroll, showed total salaries of P 7,000. 21 Collected the account of Sealey's Inn; Issued official receipt No. 10060 for the full payment received. Paid the following invoices as supported by various official receipts issued for te payment made: 23 Electric bill P 3,500 Business permits and licenses 5,000 27 Rendered various laundry services to the following: Walk-in customers P 30,000 Jamont Hotel - Charge Invoice 30-day received 55,000 Jewels' Pensionne - Charge Invoice; received 25,000 28 Bought the following from various suppliers: Office furniture - Charge invoice # 2331 P 28,000 Laundry supplies - Charge invoice # 3855 10,000 29 Received a 30-day, 12 percent promissory note from TG Lodge for various laundry services rendered amounting to P 20,000 30 Paid the salary of the workers for the second half of December, 2019 as evidenced by the voucher duly supported by the payroll, P9,000
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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