Fundamentals in Accountancy, Business and Management 1 Journalizing Entries INSTRUCTION: Journalize each transaction. Write your answers on your Journal Book. 1. Mr. John Jowable started his perfume business. He put Cash P1,500,000 to the capital of Jowable Perfumes on April 1, 2022 2. Mr. Jowable acquire the following office equipment's and supplies on April 2, 2022, Computer P35,000, Office Tables and Chairs P25,000, Perfume Display racks P10,500, Office Supplies P15,000. He used the cash of the business. 3. April 3. Mr. Jowable applied for Internet Services. He paid P45,000. The payment is for the 1t month (April 2022) and advanced payment until December 2022. 4. April 4. Mr. Jowable started operation. He sells his perfume for P150 per bottle. A customer buys 10 bottles of Jowable Perfume and paid cash. 5. On April 7. Ms. Chinita, a friend of Mr. Jowable ordered 50 bottles of perfume. Mr. Jowable delivered the products and gave Ms. Chinita a 15-day term for the payment of the perfumes. 6. Mr. Jowable purchase Brother HL-T4000DW Printer to be used in the business. The cost of the printer is P35,000. He wrote a note to Asianic that he will pay on April 8, 2022. Asianic approved and accepted the note. 7. April 15, 2022 Mr. Jowable paid the following expenses: Salary P20,000, Meralco P1,500 Meals P10,000 8. Mr. Jowable collected 50% of Ms. Chanita's order. Mr. Jowable received cash for the said payment on April 20, 2022 9. Mr. Jowable paid full amount of the printer to Asianic on April 25, 2022, using cash. 10. Mr. Jowable withdraw P85,000 cash on the business on April 30, 2022 - How much is the cash balance of Jowable Perfume on April 30, 2022
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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