Assume Annie bids $1,080 for the job. If it wins the bid, how much of the total bid receipts a) Will be recorded as gross sales revenue b) Will be paid to governing authorities as sales tax? c) Will be paid to Annie's Homemade Corporate Headquarters d) Will be disbursed to the company that processes the credit card payment? e) Will be recorded as net sales revenue?
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.
Annie's Homemade has been invited to submit a bid to cater a Memorial Day picnic with 60 servings of four flavors for a total of 240 pre-packaged servings of ice cream. Annie's' average ingredient and packaging costs (including cup, lid, spoon, and stickers) are $1.50 per serving. It would cater the event with one manager, whose is paid an annual salary of $40,000 (or an average of $20.00 per hour), and two additional employees who are paid $8.00 per hour. The wedding party expects Annie's staff to remain on-site for two hours to serve ice cream. The round-trip drive time to the event plus the tent setup and breakdown time is 1.50 hours. The wedding is 40 miles round-trip and the company pickup truck's diesel fuel, diesel exhaust fluid, and oil expenses are $0.75 per mile. The manager catering the wedding would also spend 3.5 hours manufacturing the ice cream for the picnic and portioning it into six-ounce paper cups. He would be assisted by one employee for two hours who would apply a branded flavor sticker and an ingredient label before securing one lid on each cup of ice cream. The company can fulfill the order with its existing capacity and has gathered the following information with respect to its annual fixed overhead: In-store Manufacturing overhead (e.g., equipment
Assume Annie bids $1,080 for the job. If it wins the bid, how much of the total bid receipts
a) Will be recorded as gross sales revenue
b) Will be paid to governing authorities as sales tax?
c) Will be paid to Annie's Homemade Corporate Headquarters
d) Will be disbursed to the company that processes the credit card payment?
e) Will be recorded as net sales revenue?
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