Mastery Problem Barry Bird opened the Barry Bird Basketball Camp for children ages 10 through 18. Campers typically register for one week in June or July, arriving on Sunday and returning home the following Saturday. College players serve as cabin counselors and assist the local college and high school coaches who run the practice sessions. The registration fee includes a room, meals at a nearby restaurant, and basketball instruction. In the off-season, the facilities are used for weekend retreats and coaching clinics. Bird developed the following chart of accounts for his service business: Chart of Accounts Assets 101 Cash 142 Office Supplies 183 Athletic Equipment 184 Basketball Facilities Liabilities 202 Accounts Payable Owner’s Equity 311 Barry Bird, Capital 312 Barry Bird, Drawing Revenues 401 Registration Fees Expenses 511 Wages Expense 512 Advertising Expense 524 Food Expense 525 Phone Expense 533 Utilities Expense 536 Postage Expense The following transactions took place during the month of June: June 1 Bird invested cash in the business, $10,000. 1 Purchased basketballs and other athletic equipment, $3,000. 2 Paid Hite Advertising for flyers that had been mailed to prospective campers, $5,000. 2 Collected registration fees, $15,000. 2 Rogers Construction completed work on a new basketball court that cost $12,000. Arrangements were made to pay the bill in July. 5 Purchased office supplies on account from Gordon Office Supplies, $300. 6 Received bill from Magic’s Restaurant for meals served to campers on account, $5,800. 7 Collected registration fees, $16,200. 10 Paid wages to camp counselors, $500. 14 Collected registration fees, $13,500. 14 Received bill from Magic’s Restaurant for meals served to campers on account, $6,200. 17 Paid wages to camp counselors, $500. 18 Paid postage, $85. 21 Collected registration fees, $15,200. 22 Received bill from Magic’s Restaurant for meals served to campers on account, $6,500. 24 Paid wages to camp counselors, $500. 28 Collected registration fees, $14,000. 30 Received bill from Magic’s Restaurant for meals served to campers on account, $7,200. 30 Paid wages to camp counselors, $500. 30 Paid Magic’s Restaurant on account, $25,700. 30 Paid utility bill, $500. 30 Paid phone bill, $120. 30 Bird withdrew cash for personal use, $2,000. Required Enter the transactions in a general journal. Use the following journal pages: June 1–6, page 1; June 7–22, page 2; June 24–30, page 3. Post the entries to the general ledger. Prepare a trial balance.
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.
Mastery Problem
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Barry Bird opened the Barry Bird Basketball Camp for children ages 10 through 18. Campers typically register for one week in June or July, arriving on Sunday and returning home the following Saturday. College players serve as cabin counselors and assist the local college and high school coaches who run the practice sessions. The registration fee includes a room, meals at a nearby restaurant, and basketball instruction. In the off-season, the facilities are used for weekend retreats and coaching clinics. Bird developed the following chart of accounts for his service business:
Chart of Accounts Assets 101 Cash 142 Office Supplies 183 Athletic Equipment 184 Basketball Facilities Liabilities 202 Accounts Payable Owner’s Equity 311 Barry Bird, Capital 312 Barry Bird, Drawing Revenues 401 Registration Fees Expenses 511 Wages Expense 512 Advertising Expense 524 Food Expense 525 Phone Expense 533 Utilities Expense 536 Postage Expense The following transactions took place during the month of June:
June 1 Bird invested cash in the business, $10,000. 1 Purchased basketballs and other athletic equipment, $3,000. 2 Paid Hite Advertising for flyers that had been mailed to prospective campers, $5,000. 2 Collected registration fees, $15,000. 2 Rogers Construction completed work on a new basketball court that cost $12,000. Arrangements were made to pay the bill in July. 5 Purchased office supplies on account from Gordon Office Supplies, $300. 6 Received bill from Magic’s Restaurant for meals served to campers on account, $5,800. 7 Collected registration fees, $16,200. 10 Paid wages to camp counselors, $500. 14 Collected registration fees, $13,500. 14 Received bill from Magic’s Restaurant for meals served to campers on account, $6,200. 17 Paid wages to camp counselors, $500. 18 Paid postage, $85. 21 Collected registration fees, $15,200. 22 Received bill from Magic’s Restaurant for meals served to campers on account, $6,500. 24 Paid wages to camp counselors, $500. 28 Collected registration fees, $14,000. 30 Received bill from Magic’s Restaurant for meals served to campers on account, $7,200. 30 Paid wages to camp counselors, $500. 30 Paid Magic’s Restaurant on account, $25,700. 30 Paid utility bill, $500. 30 Paid phone bill, $120. 30 Bird withdrew cash for personal use, $2,000. Required
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Enter the transactions in a general journal. Use the following journal pages: June 1–6, page 1; June 7–22, page 2; June 24–30, page 3.
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Post the entries to the general ledger. -
Prepare a
trial balance .
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