Jim operates Scent Company, a perfume and soap store. During May 2018, the following transactions were completed. TRANSACTIONS
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.
Jim operates Scent Company, a perfume and soap store. During May 2018, the following transactions were completed.
TRANSACTIONS
May 1 - Jim invested cash of P50,000 and merchandise, P10,000 to open the business. Deposited the amount with PCIB. Official Receipt No. 101
May 3- Purchased merchandise on account from Subic, P13,200. Terms: 2/10, n/30. Purchase
Invoice 422.
May 4 - Paid rent expense for April, P900; Check No. 200.
May 5 - Purchased store supplies on account from Alexis, P550. Terms: 1/10, n/30. Purchase Invoice
510.
May 8 - Sold merchandise on account to Rustan, P11,000. Terms: 1/10, n/30; Sales Invoice No. 150.
Cost of merchandise was P5,500.
May 12 - Paid Subic the amount owed on the May 3 purchase, Check No. 201
May 14 - Purchased merchandise on account from Ong’s Boutique, P27,500. Terms: 1/10, n/30; Sales
Invoice No. 801.
May 15 - Paid Alexis the amount owed on the May 5 purchase. Check No. 202
May 16 - Recorded cash sales for the first half of May, P33,000. Cost of merchandise was P16,500.
Official Receipt No. 102
May 17 - Sold merchandise on account to Robinson, P8,800. Terms: n/30.
Cost of merchandise was P4,400. Check No. 151
May 18 - Received a check from Rustan for the amount owed on the May 8 sale. Official Receipt No.
103
May 20 - Issued a check to Freight Forwarders on various purchases made, P6,500. Check No. 203
May 25 - Borrowed P10,000 from City Bank, signing a 10%, 90-day note. Official Receipt No. 104
May 28 - Paid Ong’s Boutique the amount owed on the May 14 purchase. Check No. 204
May 30 - Owner drew a check payable to herself for personal use, P5,000. Check No. 205
REQUIREMENTS :
1. JOURNALIZE THE TRANSACTIONS USING SPECIAL JOURNAL AND GENERAL JOURNAL .
2 POST TO THE GENERAL LEDGER
3. POST TO THE SUBSIDIARY LEDGERS.
4. PREPARETHE
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