Jim's Quick Delivery Trial Balance May 31, 20-- ACCOLMI ACOINI TLE DTALAME CH MAME 3826 00 1212 00 64 8 00 2 100 00 8000 00 Cash 101 Accounts Receivable 122 Office Supplies Office Equipment Delivery Truck Accounts Payable Jim Andrews, Capital 142 181 185 202 6 000 00 311 4 478 00 Jim Andrews, Drawing 312 1800 00 Delivery Fees 9880 00 401 Wages Expense Advertising Expense Rent Expense Phone Expense 1200 00 90 00 900 00 126 00 98 00 60 00 18 6 00 S11 512 521 $25 Electricity Expense Charitable Contributions Expense Gas and Oil Expense 533 534 538 Miscellaneous Expense 549 112 00 20 35 8 00 20 3 58 00
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.
JOURNALIZING AND POSTING TRANSACTIONS Jim Andrews opened a delivery business in March. He rented a small office and has a part-time assistant. His
REFER IMAGE
Andrews’ transactions for the month of June are as follows:
June 1 Paid rent, $300.
2 Performed delivery services for $300: $100 in cash and $200 on account.
4 Paid for newspaper advertising, $15.
6 Purchased office supplies on account, $180.
7 Received cash for delivery services rendered, $260.
9 Paid cash on account (truck payment), $200.
10 Purchased a copier (office equipment) for $700: paid $100 in cash and put $600 on account.
June 11 Made a contribution to the Red Cross (charitable contributions), $20.
12 Received cash for delivery services rendered, $380.
13 Received cash on account for services previously rendered, $100.
15 Paid a part-time worker, $200.
16 Paid electric bill, $36.
18 Paid phone bill, $46.
19 Received cash on account for services previously rendered, $100.
20 Andrews withdrew cash for personal use, $200.
21 Paid for gas and oil, $32.
22 Made payment on account (for office supplies), $40.
24 Received cash for services rendered, $340.
26 Paid for a magazine subscription (miscellaneous expense), $15.
27 Received cash for services rendered, $180
27 Received cash on account for services previously rendered, $100.
29 Paid for gasoline, $24.
30 Paid a part-time worker, $200.
REQUIRED
1. Set up general ledger accounts by entering the balances as of June 1.
2. Journalize the transactions for June in a two-column general journal. Use the following journal pages: June 1–10, page 7; June 11–20, page 8; June 21–30, page 9.
3.
4. Prepare a trial balance.
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