Brown Inc. records purchases in a purchases journal and purchase returns in the general journal. Oct. 1 Purchased inventory on account from Price Inc. for $2,000. Oct. 3 Purchased inventory on account from Cabrera Inc. for $3,000. Oct. 8 Returned half of the inventory to Price Inc. Oct. 9 Purchased inventory on account from Price Inc. for $4,200. Record the above transactions using a purchases journal, a general journal, and an accounts payable subsidiary ledger. The company uses the periodic method of accounting for inventory. If an amount box does not require an entry, leave it blank.
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.
Brown Inc. records purchases in a purchases journal and purchase returns in the general journal.
| Oct. 1 | Purchased inventory on account from Price Inc. for $2,000. |
| Oct. 3 | Purchased inventory on account from Cabrera Inc. for $3,000. |
| Oct. 8 | Returned half of the inventory to Price Inc. |
| Oct. 9 | Purchased inventory on account from Price Inc. for $4,200. |
Record the above transactions using a purchases journal, a general journal, and an accounts payable subsidiary ledger. The company uses the periodic method of accounting for inventory. If an amount box does not require an entry, leave it blank.
| DATE | ACCOUNT TITLE | DOC. NO. |
POST. REF. |
DEBIT | CREDIT | ||
|---|---|---|---|---|---|---|---|
| 1 | Oct. 8 |
|
Accounts Receivable-Cabrera Inc. | Accounts Receivable-Cabrera Inc. | 1 | ||
| 2 |
|
Accounts Payable-Price Inc. | Accounts Payable-Price Inc. | 2 |
| PURCHASES JOURNAL | Page: 113 | |||||
Date |
Account |
Purchase Order No. |
Ref. |
Merchandise Inventory DR |
Accounts Payable CR |
|
| 2019 | ||||||
| Oct. 1 |
|
fill in the blank e4a368026f9802c_2 | fill in the blank e4a368026f9802c_3 | fill in the blank e4a368026f9802c_4 | fill in the blank e4a368026f9802c_5 | |
| Oct. 3 |
|
fill in the blank e4a368026f9802c_7 | fill in the blank e4a368026f9802c_8 | fill in the blank e4a368026f9802c_9 | fill in the blank e4a368026f9802c_10 | |
| Oct. 9 |
|
fill in the blank e4a368026f9802c_12 | fill in the blank e4a368026f9802c_13 | fill in the blank e4a368026f9802c_14 | fill in the blank e4a368026f9802c_15 | |
| Total | fill in the blank e4a368026f9802c_16 | fill in the blank e4a368026f9802c_17 |
| Accounts Payable Subsidiary Ledger | |||||
|---|---|---|---|---|---|
| Account: | Price Inc. | #AP-1 | |||
| DATE | ITEM | POST. REF. | TRANSACTION | BALANCE | |
| DEBIT | CREDIT | CREDIT | |||
| Beginning Balance | 0.00 | ||||
| Oct. 1 | Purchases Journal |
|
fill in the blank 212ca5fcaff3028_2 | fill in the blank 212ca5fcaff3028_3 | fill in the blank 212ca5fcaff3028_4 |
| Oct. 8 | General Journal |
|
fill in the blank 212ca5fcaff3028_6 | fill in the blank 212ca5fcaff3028_7 | fill in the blank 212ca5fcaff3028_8 |
| Oct. 9 | Purchases Journal |
|
fill in the blank 212ca5fcaff3028_10 | fill in the blank 212ca5fcaff3028_11 | fill in the blank 212ca5fcaff3028_12 |
| Account: | Cabrera Inc. | #AP-2 | |||
| DATE | ITEM | POST. REF. | TRANSACTION | BALANCE | |
| DEBIT | CREDIT | CREDIT | |||
| Beginning Balance | 0.00 | ||||
| Oct. 3 | Purchases Journal |
|
fill in the blank 212ca5fcaff3028_14 | fill in the blank 212ca5fcaff3028_15 | fill in the blank 212ca5fcaff3028_16 |
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