Analysis of Transactions Charles Chadwick opened a business called Charlie's Detective Service in January 20-, T accounts are provided for the following accounts: Cash; Accounts Receivable; Office Supplies; Computer Equipment; Office Furniture; Accounts Payable; Charles Chadwick, C Charles Chadwick, Drawing; Professional Fees; Rent Expense; and utilities Expense. (c) The following transactions occurred during the first month of business. Record these transactions in T accounts. After all transactions are recorded, foot and balance the accounts if necessary. (4) Invested cash in the business, $25,000. (b) Bought office supplies for cash, $300. Bought office furniture for cash, $4,000. Purchased computer and printer on account, $8,500. Received cash from clients for services, $4,000. Paid cash on account for computer and printer purchased in transaction (d), $2,900. Earned professional fees on account during the month, $9,500. Paid cash for office rent for January, $800. Paid utility bills for the month, $840. Received cash from clients billed in transaction (g), $5,500. withdrew cash for personal use, $2,600. (d) ( (9) (h) (10) (1) (k) Dr. + Bal. Show Me How Bal Assets T Cash Print har Cr. - Accounts Receivable Dr.- Liabilities Cr. + Accounts Payable Bal. Dr.- Owner's Equity Charles Chadwick, Capital Drawing Cr. + Expenses
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.
Journal Entries - Journal Entries are the recording of transactions of the organization. It is recorded as Debit and Credit. All the transactions are recorded using journals in the form of debit and credit.
Ledgers - After recording transactions in the journal next step is to transfer them into ledgers. Ledgers are the individual account of real personal and nominal.
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