258 259 Hoochie Mama, Inc. manufactures Lingerie and specialzes in tight underwear. Amy Awesome is the new 260 CFO and chief accountant for the company. She is responsible for all joumal entries and ledger accounts. 261 Unfortunately, she has no idea what she is doing and needs your help. Consider the following transactions 262 for Hoochie Mama, Inc.: 263 264 265 266 267 268 269 270 271 272 273 274 65,000 Purchase of materials for cash 33,000 2. Incurred Wages for factory seamstresses Incurred Wages for factory supervisor 9,000 52,000 3,000 Used in Production- Cloth Used in Production- Thread 3. Incurred certain costs: 4. Factory Deprecation Factory Insurance Factory Property Taxes 18,000 2,000 4,000 275 276 277 276 279 260 281 Allocation of Overhead to Jobs at 150% of Direct Labor Costs 120,000 Completion of Production 6. 90,000 Sold Completled Units worth 71 202 180,000 Received for those 40,000 worth of units 283 284 285 266 267 268 269 Make the journal entries for Amy Awesome 290 Closed out Overhead for the year 6. 12,000 Paid Cash for Web site expenses 10
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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