A B Loida Cardenas recently established her own business, which she called Cardenas Delivery Services. During the first month of the business 1 in October 2021, the following transactions were completed: (Do the Journal Entry, Posting and Trial Balance) 2 3 October 4 1. Deposited P19,500 of personal savings in an account at the Tarlac Development Bank in the name of Cardenas Delivery Services. Acquired a second-hand service vehicle costing P63,000, paying P7,000 in cash, and financing the remaining P56,000 by issuing a 2 note payable. Paid rent for the month, P2, 950. Acquired suppies on account P8,200. 4 7 8 Paid for the three months' insurance and recorded prepaid insurance in the amount P4,500. Received P13,900 cash for the delivery work done for the Pascua Corporation. Acquired Additional supplies for cash, P2,050. 9 10 10 Paid salaries, P3,900. Completed an assignment for Luisita Company and billed the company P15,250. Paid P2,300 of the amount owed from the October 5 transasaction. Paid miscellaneouse expenses, P1,700. Withdrew cash from business, P6,150. Collected P9,500 on account from Luisita Company. Paid salaries, P4,200. Paid utilities expenses, P800. Billed the Cojuangco Company for delivery services rendered, P13,400. 11 13 12 16 13 17 14 19 15 21 16 22 17 24 18 25 19 27 20 nO 00
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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