irections: 1. please assist with journalize each of the following transactions for October 2020. (refer to chart of accounts) 11 Cash 12 Accounts Receivable 13 Prepaid Insurance 14 Prepaid Rent 15 Supplies 16 Office Equipment 17 Accumulated Depreciation 21 Accounts Payable 22 Salaries Payable 23 Interest Payable 24 Notes Payable 25 Unearned Fees 31 Jane Reynolds, Capital 32 Jane Reynolds, Drawing 41 Fees Earned 51 Insurance Expense 52 Salary Expense 53 Supplies Expense 54 Rent Expense 55 Depreciation Expense 56 Telephone Expense 57 Advertising Expense 58 Utilities Expense 59 Miscellaneous Expense 60 Interest Expense October 1 - The owner contributed $25,000 cash to start her business. October 1 - Bought office equipment for $15,000 and signed a three-year promissory note with a local bank. The annual interest rate is 5%, with monthly payments of $449.56 beginning on November 1. October 1 - Paid for three month’s rent in advance $4,500. October 2 - Paid the premium for a three-month insurance policy $3,000. October 4 - Received cash from clients as an advance payment for work to be performed in the future $6,000. October 5 - Purchased supplies on account $5,000. October 10 - Paid cash for an advertisement to run in the October newspaper $400. October 12 - Made a payment on account $2,000. October 12 - Recorded services provided on account for the first half of the month $10,000. October 14 - Paid the part-time receptionist $800. October 17 - Recorded services to clients who paid with cash for the first half of the month $5,800. October 18 - Paid cash for supplies $550. October 20 - Recorded services provided on account $2,000. October 24 - Recorded services to clients who paid with cash $3,800. October 26 - Received cash from clients on account $7,000. October 29 - Paid the part-time receptionist $800. October 29 - Paid the October telephone bill $300. October 31 - Paid the October electricity bill $275. October 31 - Recorded services to clients who paid with cash $2,900. October 31 - Recorded services provided on account $3,100. October 31 - The owner withdrew $3,000 for personal use. October 31 – The bank deducted $50 in bank service charges for October.
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.
Directions:
1. please assist with journalize each of the following transactions for October 2020. (refer to chart of accounts)
11 Cash
12
13 Prepaid Insurance
14 Prepaid Rent
15 Supplies
16 Office Equipment
17 Accumulated
21 Accounts Payable
22 Salaries Payable
23 Interest Payable
24 Notes Payable
25 Unearned Fees
31 Jane Reynolds, Capital
32 Jane Reynolds, Drawing
41 Fees Earned
51 Insurance Expense
52 Salary Expense
53 Supplies Expense
54 Rent Expense
55 Depreciation Expense
56 Telephone Expense
57 Advertising Expense
58 Utilities Expense
59 Miscellaneous Expense
60 Interest Expense
- October 1 - The owner contributed $25,000 cash to start her business.
- October 1 - Bought office equipment for $15,000 and signed a three-year promissory note with a local bank. The annual interest rate is 5%, with monthly payments of $449.56 beginning on November 1.
- October 1 - Paid for three month’s rent in advance $4,500.
- October 2 - Paid the premium for a three-month insurance policy $3,000.
- October 4 - Received cash from clients as an advance payment for work to be performed in the future $6,000.
- October 5 - Purchased supplies on account $5,000.
- October 10 - Paid cash for an advertisement to run in the October newspaper $400.
- October 12 - Made a payment on account $2,000.
- October 12 - Recorded services provided on account for the first half of the month $10,000.
- October 14 - Paid the part-time receptionist $800.
- October 17 - Recorded services to clients who paid with cash for the first half of the month $5,800.
- October 18 - Paid cash for supplies $550.
- October 20 - Recorded services provided on account $2,000.
- October 24 - Recorded services to clients who paid with cash $3,800.
- October 26 - Received cash from clients on account $7,000.
- October 29 - Paid the part-time receptionist $800.
- October 29 - Paid the October telephone bill $300.
- October 31 - Paid the October electricity bill $275.
- October 31 - Recorded services to clients who paid with cash $2,900.
- October 31 - Recorded services provided on account $3,100.
- October 31 - The owner withdrew $3,000 for personal use.
- October 31 – The bank deducted $50 in bank service charges for October.
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- create a general ledger account for each account.
Post the journal entries. - Enter the following
adjusting entries for October 31 into the general journal:
- One month of insurance expired.
- Supplies on hand at the end of October are $2,000.
Depreciate the equipment on a straight-line basis for 5 years for one month.- Accrue the receptionist’s salary of $50.
- One month’s rent expired during the month.
- Earned one half of the fees received in advance.
- Accrue one month of interest expense on the note payable.
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