Cash Accounts I Supplies Inventory Prepaid In: Prepaid Re Office Equ Accumulat Accounts I Notes Paya Unearned] Chart of Accounts Common Stock Retained Earnings Dividends Fees Earned Sales Cost of Goods Sold Depreciation Expense Insurance Expense Rent Expense Supplies Expense Utility Expense Wages Expense M4 Engineering began operations in January of 2020. M4 Engineering provides structural engineering services to local these parks. Listed below are some transaction from the first quarter of 2020. a) On January 1, the owners deposited $200,000 into the business bank account in exchange for Common Stock. b) On January 2, M4 Engineering signed a 1-year lease for an office building in Long Beach. The owner required the rent for the year be paid in advance. M4 Engineering gave the landlord a check for $30,000. c) On January 5, M4 Engineering signed a $75,000 contract to provide engineering services beginning on April 1. d) On January 31, M4 Engineering bought $7,500 of office supplies on account. e) On February 10, M4 Engineering paid the utility bills of $300. f) On February, 15, M4 Engineering bought computers and other Office Equipment on account for $20,000. g) On February 28, M4 Engineering received $50,000 advance payment for work that will begin on April 1.
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.
![Cash
Accounts I
Supplies
Inventory
Prepaid In:
Prepaid Re
Office Equ
Accumulat
Accounts I
Notes Paya
Unearned]
Chart of Accounts
Common Stock
Retained Earnings
Dividends
Fees Earned
Sales
Cost of Goods Sold
Depreciation Expense
Insurance Expense
Rent Expense
Supplies Expense
Utility Expense
Wages Expense
M4 Engineering began operations in January of 2020. M4 Engineering provides
structural engineering services to local these parks.
Listed below are some transaction from the first quarter of 2020.
a) On January 1, the owners deposited $200,000 into the business bank account in exchange for
Common Stock.
b) On January 2, M4 Engineering signed a 1-year lease for an office building in Long Beach. The
owner required the rent for the year be paid in advance. M4 Engineering gave the landlord a check
for $30,000.
c) On January 5, M4 Engineering signed a $75,000 contract to provide engineering services beginning
on April 1.
d) On January 31, M4 Engineering bought $7,500 of office supplies on account.
e) On February 10, M4 Engineering paid the utility bills of $300.
f) On February 15, M4 Engineering bought computers and other Office Equipment on account for
$20,000.
g) On February 28, M4 Engineering received $50,000 advance payment for work that will begin
on April 1.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F39618134-6ceb-48ac-ab5a-e0c16873beed%2F57b6b5b5-7e40-4568-adf9-ee059698d6d2%2Fkq36m5c_processed.jpeg&w=3840&q=75)
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