Chapter 2 a. Collected cash owed by a customer $1,000 b. Billed customers for tables rented to date 1,000 c. Paid the following expenses: Advertising 100 Salaries 1,000 Telephone 500 d. Paid part of the accounts payable owing at April 1 800 e. Received a bill for April truck repair expenses 500 f. Collected cash owed by a customer 2,900 g. Billed customers for tables rented to date 2,000 h. Transferred prepaid rent to rent expense 60 i. Counted supplies and found this amount still on hand (recorded the amount used as an expense) 300 j. Paid a dividend 700 The following balances appeared in the general ledger accounts of Fenton Table Rentals Corporation at April 1, 2019. April 1 balances: Debit Credit Cash 5,000 Accounts receivable 5,000 Prepaid rent 200 Unused supplies 500 Accounts payable 4,000 Common stock 6,700 Required: 1 Prepare journal entries to record the April transactions shown on the "Transactions" page (see tab below). Include general ledger account numbers. 2 Post the transactions to the T- accounts. 3 Prepare a trial balance at April 30, 2019.
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.
Chapter 2
| a. | Collected cash owed by a customer | $1,000 | ||||||||
| b. | Billed customers for tables rented to date | 1,000 | ||||||||
| c. | Paid the following expenses: | |||||||||
| Advertising | 100 | |||||||||
| Salaries | 1,000 | |||||||||
| Telephone | 500 | |||||||||
| d. | Paid part of the accounts payable owing at April 1 | 800 | ||||||||
| e. | Received a bill for April truck repair expenses | 500 | ||||||||
| f. | Collected cash owed by a customer | 2,900 | ||||||||
| g. | Billed customers for tables rented to date | 2,000 | ||||||||
| h. | Transferred prepaid rent to rent expense | 60 | ||||||||
| i. | Counted supplies and found this amount still on hand (recorded the amount used as an expense) | 300 | ||||||||
| j. | Paid a dividend | 700 | ||||||||
| The following balances appeared in the general ledger accounts of Fenton Table Rentals Corporation at April 1, 2019. | |||||||||
| April 1 balances: | Debit | Credit | |||||||
| Cash | 5,000 | ||||||||
| Accounts receivable | 5,000 | ||||||||
| Prepaid rent | 200 | ||||||||
| Unused supplies | 500 | ||||||||
| Accounts payable | 4,000 | ||||||||
| Common stock | 6,700 | ||||||||
| Required: | |||||||||
| 1 | Prepare |
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| 2 | |||||||||
| 3 | Prepare a |
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| 4 | Prepare an interim income statement and statement of changes in equity for the month ended April 30, 2019 and interim balance sheet at April 30, 2019. | ||||||||
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