Domingo Company started its business on May 1, 2019. The following transactions occurred during the month of May and the following entries were recorded. A. The owners invested $9,500 from their personal account to the business account. B. Paid rent $600 with check #101. C. Initiated a petty cash fund $600 with check #102. D. Received $1,100 cash for services rendered. E. Purchased office supplies for $158 with check #103. F. Purchased computer equipment $2,300, paid $1,350 with check #104, and will pay the remainder in 30 days. G. Received $800 cash for services rendered. H. Paid wages $800, check #105. I. Petty cash reimbursement: office supplies $256, maintenance expense $108, postage expense $77, miscellaneous expense $55. Cash on hand $115. Check #106. J. Increased petty cash by $30, check #107. A. Cash 9,500 Domingo, Capital 9,500 B. Rent Expense 600 Cash 600 C. Petty Cash 600 Cash 600 D. Cash 1,100 Services Income 1,100 E. Office Supplies 158 Cash 158 F. Computer Equipment 2,300 Cash 1,350 Accounts Payable 950 G. Cash 800 Services Income 800 H. Wages Expense 800 Cash 800 I. Office Supplies 256 Maintenance Expense 108 Miscellaneous Expense 55 Postage Expense 77 Cash Over and Short 11 Cash 485 J. Petty Cash 30 Cash 30 Prepare a trial balance using the journal entries. If an amount box does not require an entry, leave it blank. Domingo CompanyTrial BalanceMay 31, 2019 Account Debit Credit Domingo, Capital Domingo, Capital Petty Cash Petty Cash - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - Total fill in the blank 40
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.
Domingo Company started its business on May 1, 2019. The following transactions occurred during the month of May and the following entries were recorded.
A. The owners invested $9,500 from their personal account to the business account.
B. Paid rent $600 with check #101.
C. Initiated a petty cash fund $600 with check #102.
D. Received $1,100 cash for services rendered.
E. Purchased office supplies for $158 with check #103.
F. Purchased computer equipment $2,300, paid $1,350 with check #104, and will pay the remainder in 30 days.
G. Received $800 cash for services rendered.
H. Paid wages $800, check #105.
I. Petty cash reimbursement: office supplies $256, maintenance expense $108, postage expense $77, miscellaneous expense $55. Cash on hand $115. Check #106.
J. Increased petty cash by $30, check #107.
| A. | Cash | 9,500 | |
| Domingo, Capital | 9,500 | ||
| B. | Rent Expense | 600 | |
| Cash | 600 | ||
| C. | Petty Cash | 600 | |
| Cash | 600 | ||
| D. | Cash | 1,100 | |
| Services Income | 1,100 | ||
| E. | Office Supplies | 158 | |
| Cash | 158 | ||
| F. | Computer Equipment | 2,300 | |
| Cash | 1,350 | ||
| Accounts Payable | 950 | ||
| G. | Cash | 800 | |
| Services Income | 800 | ||
| H. | Wages Expense | 800 | |
| Cash | 800 | ||
| I. | Office Supplies | 256 | |
| Maintenance Expense | 108 | ||
| Miscellaneous Expense | 55 | ||
| Postage Expense | 77 | ||
| Cash Over and Short | 11 | ||
| Cash | 485 | ||
| J. | Petty Cash | 30 | |
| Cash | 30 |
Prepare a
Domingo CompanyTrial BalanceMay 31, 2019
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| Total | fill in the blank 40 |
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