Enter the transactions below into the General Journal and then update the Ledger accounts as required. Transactions January 2 Sold 100 Lunch in a Box meals on credit to School Snackers for $990 (including GST). January 3 Made a cash sale of $650 (net of GST) to Philip Heathers when they bought 10 Cake it Away desert kits. Received a cheque from Delicious Deserts as full payment of their account. January 5 Purchased 50 Cake it Away desert kits from Flavour and Thensome. Each kit costs $30 and there is a delivery charge of $100. All amounts are net of GST. January 7 Sold 20 Gourmet Dinner Just Heat It meals to Help Those in Need for $25 each plus a delivery fee of $50. The total GST charged was $55 January 9 Issued Cheque number 1034 to Prepared for Good. The cheque amount was $2024 and a discount of $176 (including GST of $16) was received for early payment. January 11 Purchased 200 Ultimate BBQ Flavours packs on credit from Ingredients Plus. Each pack costs $50 and there is a delivery charge of $0.50 per pack. All amounts are net of GST. January 13 Sold 25 Cake it Away desert kits on credit to Delicious Deserts for $60 each (including GST).
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.
Enter the transactions below into the General Journal and then update the Ledger accounts as required.
Transactions
January 2 Sold 100 Lunch in a Box meals on credit to School Snackers for $990 (including GST).
January 3 Made a cash sale of $650 (net of GST) to Philip Heathers when they bought 10 Cake it Away desert kits.
Received a cheque from Delicious Deserts as full payment of their account.
January 5 Purchased 50 Cake it Away desert kits from Flavour and Thensome. Each kit costs $30 and there is a delivery charge of $100. All amounts are net of GST.
January 7 Sold 20 Gourmet Dinner Just Heat It meals to Help Those in Need for $25 each plus a delivery fee of $50. The total GST charged was $55
January 9 Issued Cheque number 1034 to Prepared for Good. The cheque amount was $2024 and a discount of $176 (including GST of $16) was received for early payment.
January 11 Purchased 200 Ultimate BBQ Flavours packs on credit from Ingredients Plus. Each pack costs $50 and there is a delivery charge of $0.50 per pack. All amounts are net of GST.
January 13 Sold 25 Cake it Away desert kits on credit to Delicious Deserts for $60 each (including GST).
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