Cash No. 101 Accounts Receivable No. 102 Balance Balance Date Post. Ref. Debit Credit Debit Credit Date Post. Ref. Debit Credit Debit Credit 23,400 36,000 8,100 27,900 Balance 4,400 Balance Aug. 9,290 13,690 12,600 31 CR.11 Aug. 31 S.4 31 CP.5 31 CR.11 Merchandise Inventory No. 105 Office Supplies No. 109 Balance Balance Date Post. Ref. Debit Credit Debit Credit Date Post. Ref. Debit Credit Debit Credit 41,700 42,510 Balance Balance 1,600 Aug. 810 Aug. 31 19 CP.5 CP.5 740 2,340 30 CR.11 810 41,700 P.8 3,780 37,920 114 37,806 31 S.4 31 CR.11 31 P.8 31 CP.5 Accounts Payable No. 201 Balance Date Post. Ref. Debit Credit Debit Credit Balance 12,500 Aug. 31 P.8 31 CP.5 Sales Journal Page 4 Invoice Customer Post. Accounts Receivable DR Cost of Goods Sold DR Date No. Account Debited Ref. Sales Revenue CR Merchandise Inventory CR Aug. 503 R. Loeb 1,000 300 504 K. Smucker 2,400 720 23 505 Fullam Company 9,200 2,760 Aug. 31 Totals 12,600 3,780 Cash Receipts Journal Page 11 Post. Accounts Sales Other Cost of Goods Sold DR Date Account Credited Ref. Cash DR Rec. CR Rev. CR Accts. CR Merchandise Inv. CR Aug. 4 Fullam Company 2,700 2,700 380 380 114 12 R. Loeb 1,000 1,000 24 K. Smucker 4,400 4,400 30 Merchandise Inv. 810 810 Aug. 31 Totals 9,290 8,100 380 810 114 Purchases Journal Page 8 Other Accounts DR Vendor Post. Accounts Merchandise Office Account Post. Date Account Credited Terms Ref. Payable CR Inventory DR Supp. DR Title Ref. Amount Aug. 3 Grossman, Inc. 1/15, n/60 1,200 1,200 22 Broman Corp. 3/15, n/60 530 Furniture 530 26 French Company 2/10, n/30 250 250 31 Suncrest Supply 1/10, n/30 8,200 8,200 Aug. 31 Totals 10,180 9,400 250 530 Cash Payments Journal Page 5 Ck. Pos. Other Accounts Merchandise Date Ref. Accounts DR Cash CR No. Account Debited Payable DR Inventory CR Aug. 682 Rent Expense 1,100 1,100 2 683 Salaries Payable 1,050 1,050 684 Office Supplies 740 740 685 French Company 2,600 2,600 11 686 Grossman, Inc. 1,200 12 1,188 16 687 Salaries Expense 1,040 1,040 19 688 Merchandise Inventory 810 810 31 689 Luke Milton, Withdrawals 900 900 Aug. 31 Totals 5,640 3,800 12 9,428
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.
Complete the general ledger entries in the first picture using the transactions from the purchases and cash payments journal (in that order) in the second image. For accounts with a $0 balance after posting an event, enter a "0" on the normal side of the account. If a line is not used in the table, leave the line empty; do not select a label or enter a zero. Abbreviations used: CR = Cash Receipts Journal, CP = Cash Payments Journal, J. = General Journal, P = Purchases Journal, S = Sales Journal.
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