Diana Mark is the president of ServicePro, Incorporated, a company that provides temporary employees for not-for-profit companies. ServicePro has been operating for five years; its revenues are increasing with each passing year. You have been hired to help Diana in analyzing the following transactions for the first two weeks of April: April Purchased and received office supplies for $1,300 on account. 2 April Billed the local United Way office $6,200 for temporary services provided. 5 April Paid $410 for supplies purchased and recorded on account last period. 8 April Placed an advertisement in the local paper for $1,200 cash. 8 April Purchased new equipment for the office costing $3,900 cash. 9 April Paid employee wages of $2,800 incurred in April. 10 April Received $2,600 on account from the local United Way office billed on April 5. 11 April Purchased land as the site of a future office for $18,000. The land value was appraised as $27,000. Paid 12 $2,500 down and signed a long-term note payable for the balance. April Issued 2,500 additional shares of common stock for $30 per share in anticipation of building a new office. 13 April Billed Family & Children's Services $3,600 for services rendered this month. 14 April Received the April utilities bill for $1,100 to be paid next month. 15 Required: For each of the transactions, prepare journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.)
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.
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PA3-2 (Algo) Recording Journal Entries [LO 3-2, LO 3-3]
Diana Mark is the president of Service Pro, Incorporated, a company that provides temporary employees for not-for-profit companies.
ServicePro has been operating for five years; its revenues are increasing with each passing year. You have been hired to help Diana in
analyzing the following transactions for the first two weeks of April:
April Purchased and received office supplies for $1,300 on account.
2
Book
April Billed the local United Way office $6,200 for temporary services provided.
5
April Paid $410 for supplies purchased and recorded on account last period.
8
Print
April Placed an advertisement in the local paper for $1,200 cash.
8
April Purchased new equipment for the office costing $3,900 cash.
9
April Paid employee wages of $2,800 incurred in April.
10
April Received $2,600 on account from the local United Way office billed on April 5.
11
April Purchased land as the site of a future office for $18,000. The land value was appraised as $27,000. Paid
12 $2,500 down and signed a long-term note payable for the balance.
April Issued 2,500 additional shares of common stock for $30 per share in anticipation of building a new office.
13
April Billed Family & Children's Services $3,600 for services rendered this month.
14
April Received the April utilities bill for $1,100 to be paid next month.
15
Required:
For each of the transactions, prepare journal entries. (If no entry is required for a transaction/event, select "No Journal Entry
Required" in the first account field.)
View transaction list
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