Adjusting Enteries: Supplies on hand are valued at $1,400. Accrued salaries are $3,195. Depreciation for the month is $250. $2,250 of services related to the Unearned Service Revenue has not been earned by month end. Directions: Journalize the Adjusting Entries Post the Adjusting Entries Prepare an Adjusted Trial Balance at January 31, 2022 Original Information: J & M Accounting Services and Office Supplies, LLC Trial Balance January 1, 2022 Title Debit Credit Cash 9,200 Accounts Receivable 2,400 Merchandise Inventory 2,100* Supplies 860 Equipment 23,000 Accumulated Depreciation 1,500 Accounts Payable 3,300 Unearned Service Revenue 3,600 Salaries and Wages Payable 2,485 Common Stock 20,000 Retained Earnings 6,675 Totals $37,560 $37,560 *(3,000 units at $0.70) During the month of January, the following summary transactions were completed. 3 Paid January’s rent $350. 3 Purchased merchandise on account from dd’s Discount Supply terms 2/10, n/30. (4,000 units @ $0.75) 4 Sold 4,400 units of inventory for Cash at $0.96 each. (3,000 @ $0.70 and 1,400 @ $0.75) 7 Gave a January 4th customer $192 for 200 units returned costing $150. (Units were returned to inventory.) 7 Received $2,000 cash from customers in payment of account. (No Discounts) 10 Paid $3,550 for salaries due employees, of which $2,485 is for December and $1,065 is for January. 11 Paid $2,800 on account. (No Discounts) 12 Paid dd’s Discount Supply in full, less discount. 13 Purchased 5,000 units for inventory on account from Office Headquarters at $0.80 each. Terms 2/10, n30. 14 Sold 4,000 units of inventory to customers on account at $0.99 per unit. Terms 2/10, n30. (Sold 2,800 units @ $0.75 and 1,200 units @ $0.80) 17 Received $5,450 Cash for services performed in January. 19 Purchased supplies on account $1,500. 24 Paid Salaries $3,550. 24 Received collections in full, less discount, from customers billed for sales on January 14th. Round to Whole Dollars. 28 Performed services on account and billed customers $2,180. 28 Paid Office Headquarters in full. (No discount). 31 Received $1,500 from customers for services to be performed in the future. Here's the work that I already have (Pictures included) before the adjusting enteries: General Journal: Date Account Titles Post Debit Credit 03 – Jan Rent Expense Cash X X $ 350.00 $350.00 03 – Jan Merchandise Inventory Accounts Payable X $3,000.00 $3,000.00 04 – Jan Cash Merchandise Revenue X $4224.00 $4,224.00 Cost of Goods Sold Merchandise Inventory X $3,150.00 $3,150.00 07 – Jan Sales Return & Allowances Cash X X $192.00 $192.00 1/7 Merchandise Inventory 150 Cost of Goods Sold 150 07 – Jan Cash Accounts Receivable X X $2,000.00 $2,000.00 10 – Jan Salary and Wages Expense Salary and Wages Payable Cash X X X $1,065.00 $2,485.00 $3,550.00 11 – Jan Accounts Payable Cash X X $2,800.00 $2,800.00 12 – Jan Accounts Payable Merchandise Inventory Cash X X $3,000.00 $60.00 $2,940.00 13 – Jan Merchandise Inventory Accounts Payable X $4,000.00 $4,000.00 14 – Jan Accounts Receivable Merchandise Revenue X $3,960.00 $3,960.00 Cost of Goods Sold Merchandise Inventory X $3,060.00 $3,060.00 17 – Jan Cash Service Revenue X X $5,450.00 $5,450.00 19 – Jan Supplies Accounts Payable X X $1,500.00 $1,500.00 24 – Jan Salaries and wages expense Cash X X $3,550.00 $3,550.00 24 – Jan Salaries and wages expense Sales Discount Accounts Receivable X X X 3881.00 $79.00 $3,960.00 28 – Jan Accounts Receivable Service Revenue X X $2,180.00 $2,180.00 28 – Jan Accounts Payable Cash X X $4,000.00 $4,000.00 31 – Jan Cash Unearned Service Revenue X X $1,500.00 $1,500.00 General Ledger Date Debit ($) 01 - Jan $9,200 03 $350 04 $4,224 07 $192 07 $2,000 10 $3,550 11 $2,800 12 $2,940 17 $5,450 24 $3,550 24 $3,881 28 $4,000 31 $1,500 01 Feb $8,873
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.
Adjusting Enteries:
- Supplies on hand are valued at $1,400.
- Accrued salaries are $3,195.
-
Depreciation for the month is $250. - $2,250 of services related to the Unearned Service Revenue has not been earned by month end.
Directions:
- Journalize the
Adjusting Entries - Post the Adjusting Entries
- Prepare an Adjusted
Trial Balance at January 31, 2022
Original Information:
J & M Accounting Services and Office Supplies, LLC
Trial Balance
January 1, 2022
|
Title |
Debit |
Credit |
|
Cash |
9,200 |
|
|
|
2,400 |
|
|
Merchandise Inventory |
2,100* |
|
|
Supplies |
860 |
|
|
Equipment |
23,000 |
|
|
Accumulated Depreciation |
|
1,500 |
|
Accounts Payable |
|
3,300 |
|
Unearned Service Revenue |
|
3,600 |
|
Salaries and Wages Payable |
|
2,485 |
|
Common Stock |
|
20,000 |
|
|
|
6,675 |
|
Totals |
$37,560 |
$37,560 |
*(3,000 units at $0.70)
During the month of January, the following summary transactions were completed.
3 Paid January’s rent $350.
3 Purchased merchandise on account from dd’s Discount Supply terms 2/10, n/30. (4,000 units @ $0.75)
4 Sold 4,400 units of inventory for Cash at $0.96 each. (3,000 @ $0.70 and 1,400 @ $0.75)
7 Gave a January 4th customer $192 for 200 units returned costing $150. (Units were returned to inventory.)
7 Received $2,000 cash from customers in payment of account. (No Discounts)
10 Paid $3,550 for salaries due employees, of which $2,485 is for December and $1,065 is for January.
11 Paid $2,800 on account. (No Discounts)
12 Paid dd’s Discount Supply in full, less discount.
13 Purchased 5,000 units for inventory on account from Office Headquarters at $0.80 each. Terms 2/10, n30.
14 Sold 4,000 units of inventory to customers on account at $0.99 per unit. Terms 2/10, n30.
(Sold 2,800 units @ $0.75 and 1,200 units @ $0.80)
17 Received $5,450 Cash for services performed in January.
19 Purchased supplies on account $1,500.
24 Paid Salaries $3,550.
24 Received collections in full, less discount, from customers billed for sales on January 14th. Round to Whole Dollars.
28 Performed services on account and billed customers $2,180.
28 Paid Office Headquarters in full. (No discount).
31 Received $1,500 from customers for services to be performed in the future.
Here's the work that I already have (Pictures included) before the adjusting enteries:
General Journal:
|
Date |
Account Titles |
Post |
Debit |
Credit |
|
03 – Jan |
Rent Expense Cash |
X X |
$ 350.00 |
$350.00 |
|
03 – Jan |
Merchandise Inventory Accounts Payable |
X |
$3,000.00 |
$3,000.00 |
|
04 – Jan |
Cash Merchandise Revenue |
X
|
$4224.00 |
$4,224.00 |
|
Cost of Goods Sold Merchandise Inventory |
X
|
$3,150.00
|
$3,150.00 |
|
|
07 – Jan |
Sales Return & Allowances Cash |
X X |
$192.00 |
$192.00 |
|
1/7 |
Merchandise Inventory |
|
150 |
|
|
|
Cost of Goods Sold |
|
|
150 |
|
07 – Jan |
Cash Accounts Receivable |
X X |
$2,000.00 |
$2,000.00 |
|
10 – Jan |
Salary and Wages Expense Salary and Wages Payable Cash |
X X X |
$1,065.00 $2,485.00
|
$3,550.00 |
|
11 – Jan |
Accounts Payable Cash |
X X |
$2,800.00 |
$2,800.00 |
|
12 – Jan |
Accounts Payable Merchandise Inventory Cash |
X
X |
$3,000.00 |
$60.00 $2,940.00 |
|
13 – Jan |
Merchandise Inventory Accounts Payable |
X |
$4,000.00 |
$4,000.00 |
|
14 – Jan |
Accounts Receivable Merchandise Revenue |
X
|
$3,960.00 |
$3,960.00 |
|
Cost of Goods Sold Merchandise Inventory |
X
|
$3,060.00 |
$3,060.00 |
|
|
17 – Jan |
Cash Service Revenue |
X X |
$5,450.00 |
$5,450.00 |
|
|
|
|
|
|
|
19 – Jan
|
Supplies Accounts Payable |
X X |
$1,500.00 |
$1,500.00 |
|
24 – Jan |
Salaries and wages expense Cash |
X X |
$3,550.00 |
$3,550.00 |
|
24 – Jan |
Salaries and wages expense Sales Discount Accounts Receivable |
X X X |
3881.00 $79.00 |
$3,960.00 |
|
28 – Jan |
Accounts Receivable Service Revenue |
X X |
$2,180.00 |
$2,180.00 |
|
28 – Jan |
Accounts Payable Cash |
X X |
$4,000.00 |
$4,000.00 |
|
31 – Jan |
Cash Unearned Service Revenue |
X X |
$1,500.00 |
$1,500.00 |
General Ledger
|
Date |
Debit ($) |
|
01 - Jan |
$9,200 |
|
03 |
$350 |
|
04 |
$4,224 |
|
07 |
$192 |
|
07 |
$2,000 |
|
10 |
$3,550 |
|
11 |
$2,800 |
|
12 |
$2,940 |
|
17 |
$5,450 |
|
24 |
$3,550 |
|
24 |
$3,881 |
|
28 |
$4,000 |
|
31 |
$1,500 |
|
01 Feb |
$8,873 |
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