Journalize the transactions for the month of July. *Create a Trial Balance and an adjusted trial balance using the data below as your adjustments: Data for the adjustments are as follows: Insurance expired during the month, $1,020. Depreciation of building for the month, $480. Depreciation of pool/slide facility for the month, $675. Depreciation of pool furniture for the month, $220. Wages accrued at July 31, $920. July 1
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.
*Journalize the transactions for the month of July.
*Create a
Data for the adjustments are as follows:
- Insurance expired during the month, $1,020.
Depreciation of building for the month, $480.- Depreciation of pool/slide facility for the month, $675.
- Depreciation of pool furniture for the month, $220.
- Wages accrued at July 31, $920.
July
1
Judar deposited $135,000 in a bank account for the purpose of buying Blast Off! The business is a recreation area offering three large waterslides (called “tubes”)—one children’s slide, an inner tube run, and a looping extreme slide.
2
Bought Blast Off! in its entirety for a total price of $540,800. The assets include pool furniture, $3,800; the pool/slide facility (includes filter system, pools, pump, and slides), $148,800; building, $96,200; and land, $292,000. Paid $120,000 down and signed a mortgage note for the remainder.
2
Received and paid the bill for a one-year premium for insurance, $12,240.
2
Bought 125 inner tubes from Worn Tires for $1,225, paying $500 down, with the remainder due in 20 days.
3
Signed a contract with a video game company to lease space for video games and to provide a food concession. The rental income agreed upon is 10 percent of the revenues generated from the machines and food, with the estimated monthly rental income paid in advance. Received cash payment for July, $250.
5
Received bills totaling $1,320 for the grand opening/Fourth of July party. The bill from Party Rentals for the promotional handouts, balloons, decorations, and prizes was $620, and the newspaper advertising bills from the City Star were $700.
6
Signed a one-year contract for the pool maintenance with All-Around Maintenance and paid the maintenance fee for July of $1,600.
6
Paid cash for employee picnic food and beverages, $128. (Miscellaneous Expense.)
7
Received $12,086 in cash as income for the use of the facilities.
9
Bought parts to repair the filter system on account from Arlen’s Pool Supply, $646.
14
Received $10,445 in cash as income for the use of the facilities.
15
Paid wages to employees for the period ended July 14, $9,460.
16
Paid $1,150 cash as partial payment on account for promotional expenses recorded on July 5. Party Rentals was paid $620 and City Star was paid the remainder of $530.
16
Judar withdrew cash for personal use, $2,500.
17
Bought additional pool furniture from Pool Suppliers for $2,100; payment due in 30 days.
18
Paid cash to seamstress for alterations and repairs to the character costumes, $328. (Miscellaneous Expense.)
21
Received $10,330 in cash as income for the use of the facilities.
21
Paid cash to Worn Tires as partial payment on account, $600.
23
Received a $225 reduction of our account from Pool Suppliers for lawn chairs received in damaged condition.
25
Received and paid telephone bill, $292.
29
Paid wages for the period July 15 through 28 of $8,227.
31
Received $11,870 in cash as income for the use of the facilities.
31
Paid cash to Arlen’s Pool Supply to apply on account, $360.
31
Received and paid water bill, $684.
31
Paid cash as an installment payment on the mortgage, $3,890. Of this amount, $1,910 represents a reduction in the principal and the remainder is interest.
31
Received and paid electric bill, $942.
31
Bought additional inner tubes from Worn Tires for $480, paying $100 down, with the remainder due in 30 days.
31
Judar withdrew cash for personal use, $3,200.
31
Sales for the video and food concessions amounted to $4,840, and 10 percent of $4,840 equals $484. Because you have already recorded $250 as concessions income, record the additional $234 revenue due from the concessionaire. (Cash was not received.)
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