Matrix Homes was organized on January 1, 2021 and had the account balances at January 31, listed in tabular form: Cash + Equipment + Building + Land + Vehicle= A/P + N/P + Owner’s Equity $42,000 $55,000 $165,000 $180,000 $15,000 = $35,000 95000 327,000 Early in February, the following transactions were carried out by Matrix Homes: Purchased several laptops on account for $22,000 (60 days open account). Sold additional stock to owners for $75,000. Purchases land and office building for a total price of $95,000, of which $45,000 was the value of the land and $50,000 was the value of the building. Paid $32,000 in cash and signed a note payable for the remaining balance $63,000. Cash withdraw from business for personal use $5000 (Drawings). Money borrowed from HBL in the amount of $25,000. Signed a note payable. Paid the $25,000 accounts payable due as of January 31. Paid the $20,000 notes payable as of January 31.
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.
financial accounting
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Q.No.1 (06)
Matrix Homes was organized on January 1, 2021 and had the account balances at January 31, listed in tabular form:
Cash + Equipment + Building + Land + Vehicle= A/P + N/P + Owner’s Equity
$42,000 $55,000 $165,000 $180,000 $15,000 = $35,000 95000 327,000
Early in February, the following transactions were carried out by Matrix Homes:
- Purchased several laptops on account for $22,000 (60 days open account).
- Sold additional stock to owners for $75,000.
- Purchases land and office building for a total price of $95,000, of which $45,000 was the value of the land and $50,000 was the value of the building. Paid $32,000 in cash and signed a note payable for the remaining balance $63,000.
- Cash withdraw from business for personal use $5000 (Drawings).
- Money borrowed from HBL in the amount of $25,000. Signed a note payable.
- Paid the $25,000 accounts payable due as of January 31.
- Paid the $20,000 notes payable as of January 31.
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