Derek Scoffin owns and operates YH Curling School on evenings and weekends. The company had the following balances in its general ledger at January 31, 2021: Cash $2,490, Accounts Receivable $880, Equipment $12,810, Accounts Payable $1,760, and D. Scoffin, Capital $14,420. The following events and transactions occurred during February 2021. Feb. 1 Received and paid a $500 advertising bill. 2 Paid the YH Curling Club $1,175 rent for use of the ice for lessons during the first two weeks of February. 3 Collected $4,510 cash for February’s curling lessons. 4 Collected all of the accounts receivable at January 31 in cash. 6 Paid $1,195 of the accounts payable at January 31. 14 Paid his part-time assistant $355. 15 Paid the YH Curling Club $1,175 rent for use of the ice for lessons during the last two weeks of February. 23 Provided $1,520 of coaching services to curlers preparing for a tournament. The curlers will pay him on March 2. 26 Paid $190 cash for the telephone bill for February. 27 Received $2,980 cash for curling lessons in March. 27 Withdrew $560 cash. Used the cash to pay his Visa bill. 28 Paid his part-time assistant $355. 28 Paid the YH Curling Club $1,175 rent for use of the ice for lessons during the first two weeks of March. Prepare journal entries to record each of YH Curling School’s February transactions
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.
| Feb. 1 | Received and paid a $500 advertising bill. | |
| 2 | Paid the YH Curling Club $1,175 rent for use of the ice for lessons during the first two weeks of February. | |
| 3 | Collected $4,510 cash for February’s curling lessons. | |
| 4 | Collected all of the accounts receivable at January 31 in cash. | |
| 6 | Paid $1,195 of the accounts payable at January 31. | |
| 14 | Paid his part-time assistant $355. | |
| 15 | Paid the YH Curling Club $1,175 rent for use of the ice for lessons during the last two weeks of February. | |
| 23 | Provided $1,520 of coaching services to curlers preparing for a tournament. The curlers will pay him on March 2. | |
| 26 | Paid $190 cash for the telephone bill for February. | |
| 27 | Received $2,980 cash for curling lessons in March. | |
| 27 | Withdrew $560 cash. Used the cash to pay his Visa bill. | |
| 28 | Paid his part-time assistant $355. | |
| 28 | Paid the YH Curling Club $1,175 rent for use of the ice for lessons during the first two weeks of March. |
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