How to put the following into a balance sheet: opened cash account at bank with 36,000 in ewxchange for common stock purchased office supplies on account 1800.00 received cash from fees earned and from property rental 6750.00 paid rent on office for the month 5000.00 paid creditors on account 1375 billed customers for fees earned 9500 paid auto expense 840, misc. 960 paid office salaries 3600 cost of supplies on hand 350.00, cost of supplies used was 1450 dividends paid 3000
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.
How to put the following into a balance sheet:
opened cash account at bank with 36,000 in ewxchange for common stock
purchased office supplies on account 1800.00
received cash from fees earned and from property rental 6750.00
paid rent on office for the month 5000.00
paid creditors on account 1375
billed customers for fees earned 9500
paid auto expense 840, misc. 960
paid office salaries 3600
cost of supplies on hand 350.00, cost of supplies used was 1450
dividends paid 3000
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