Enter the transactions on the worksheet format provided below. January 2 Invested in a new business $ 100000 cash, $25000 in the bank. 6 Bought a vehicle on credit $12000 10 Bought office supplies for $4000 cash. 14 Sold goods for cash to clients $10000. 13 Bought stores supplies on credit $1200 15 Provided sales on credit to Susan $15000. 18 Paid utilities $14500. 20 Paid 12 months insurance in advance $4800. 21 Paid for stores supplies bought on 13th to take advantage of a $100 discount. 24 Purchases on credit by Saturn Co. $2000. 30 Received $14500 as full settlement from Susan. Assets Liabilities Equity Date Bank Cash Debtors Office supplies Vehicle Prepaid insurance Stores supplies Creditors Other payables Equity
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 on the worksheet format provided below.
January
2 Invested in a new business $ 100000 cash, $25000 in the bank.
6 Bought a vehicle on credit $12000
10 Bought office supplies for $4000 cash.
14 Sold goods for cash to clients $10000.
13 Bought stores supplies on credit $1200
15 Provided sales on credit to Susan $15000.
18 Paid utilities $14500.
20 Paid 12 months insurance in advance $4800.
21 Paid for stores supplies bought on 13th to take advantage of a $100 discount.
24 Purchases on credit by Saturn Co. $2000.
30 Received $14500 as full settlement from Susan.
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Assets |
Liabilities |
Equity |
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Date |
Bank |
Cash |
Debtors |
Office supplies |
Vehicle |
Prepaid insurance |
Stores supplies |
Creditors |
Other payables |
Equity |
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