Mr. Juan Lopez launched Lopez Fiesta Mart on December 1, 2022 with a cash investment of 220,000. The following are additional transactions for the month: NM 4 2 3 C865tatts Coun Mr.Lopez invested equipment for the business worth 30,000 Bought supplies on account for 12, 600 Acquired a service vehicle costing 75,000. A payment of 25,000 cash was made and a promissory note was given for the remainder, payable for 6 equal monthly installment. Purchased merchandise from JKL enterprise 45,500, Term, 3/30, n/30 Paid 1200 delivery charge for december 5 purchase SAAAAAA Sold merchandise on account 37000, term 3/30, n/30. cost of merchandise, 25000 Paid 700 freight for december 8 transaction SANDAAAAAA returned defective merchandise to JKL enterprise amounting to 8500 Paid salaries 12300 16 signed a promissory note for 25000 loaned amount from commonwealth bank received returned merchandise from customers on december 10, 4000 paid 7600 of the amount owed from the december 3 transaction Shitettoniš Purchased additional groceries from QR supermarket amounting to 86000 Collected full settlement of customer from december 10 sale 21450 cost of merchandise was sold for 38750 settled account to JKL enterprise cash received, 10000 and a promissory note for 25000 for merchandise sold to a key customer. Cost of merchandise 28000 MR. Lopez with draw 20000 cash from the business paid telephone expense, 2300 paid building rentals for the month, 5200 paid the first installment of the note payable on service vehicle paid saalaries 11300, net of the following deductions: sss 380, pag-ibig 100 Sajajajajajajajajif Philhealth 220 ajajajajajajaj The merchandise inventory at the end of the month is 48000 Additional info. For year-end adjustments -the useful life of the equipment is 5 years with no salvage value -the useful life of the service vehicle is 10 years with no salvage value -remaining unused supplies worth 9100. use asset method
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.
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