A. Directions: Record the following credit sales and credit purchases transactions in the sales journal, purchase journal, and general journal. Write your answer on a journal and 10-column columnar sheet. Date Invoice Customer Items Sold Terms Amount No. Jan. 5 601 Pine APL Co. Merchandise 1/10, n/30 P 17,500 6 602 H₂O Melon Ent. Merchandise 2/15, EOM 300,000 7 603 Tsi-koh 8 Store Merchandise 3/10, n/30 400,000 10 604 Mang Ago Shoppe Merchandise 1/20, n/45 50,000 12 605 Ma. G. Anda Merchandise 2/10, EOM 100,000 Page 1 PR Accounts Receivable Dr /Cr. Sales Terms Amount 3/10, n/30 2/15, EOM 2/10, n/30 1/15, n/45 Cash Page Purchases (Dr)/ Cr. Accounts Payable Debit Credit 24,000 24,000 Date Invoice No. Jan. 2 1205 5 1555 6 1504 10 1234 13 1001 Date Invoice Number Date Invoice Number Date Jan. 6 Equipment Sales Journal Customer Supplier's Name Isopropyl Mfg Face Mask Medical Supply Wall-E Computer Sales Face Shield Trading Gloves Enterprises Purchase Journal Supplier's Name PR General Journal Description Items Purchased Merchandise Merchandise Computer Merchandise Merchandise Accounts Payable PR P50,000 70,000 24,000 60,000 35,000
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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