Number Account Number Account 11 18 Cash Accounts Receivable Notes Receivable Merchandise Inventory Equipment Land Sales Revenue Cost of Goods Sold 12 19 13 41 15 51 Office Supplies 16 Nov. 2 Sold merchandise inventory on credit, terms n/30, to Intelysis, Inc., $2,200 (cost, $400). 6 Sold office supplies to an employee at cost, $85, receiving cash. 6 Cash sales for the week totaled $2,400 (cost, $1,400). 8 Sold merchandise inventory on account, terms n/30, to A. Z. Morris, $7,500 (cost, $5,000). 9 Sold land that cost $9,000 for cash of the same amount. 11 Sold merchandise inventory on account, terms n/30, to Sloan Electric, $5,000 (cost, $3,450). 11 Received cash from Intelysis in full settlement of its account receivable from November 2. 13 Cash sales for the week were $2,200 (cost, $1,750). 15 Sold merchandise inventory on credit, terms n/30, to West and Michael, $3,000 (cost, $2,200). 19 Sold merchandise inventory on account, terms n/30, to Sloan Electric, $700 (cost, $200). Cash sales for the week were $940 (cost, $640). 20 Received $4,400 cash from A. Z. Morris in partial settlement of its account 21 receivable. Received cash from West and Michael for its account receivable from 22 November 15. 22 Sold merchandise inventory on account, terms n/30, to Olivia Co., $1,510 (cost, $980). Collected $5,800 on a note receivable. There was no interest earned. 25 Cash sales for the week totaled $3,780 (cost, $2,430). 27 Sold merchandise inventory on account, terms n/30, to R. A. Brown, $230 (cost, $110). Received $2,200 cash on account from A. Z. Morris. 27 30
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.
All problems can be completed manually or by using either MyAccountingLab General Ledger or QuickBooks.
Using the sales, cash receipts, and general journals
Assume Peaceful Spring Company uses the perpetual inventory system. The general ledger of Peaceful Springs Company includes the Following selected accounts, along with their account numbers:
Sales and cash receipts transactions in November were as follows:
Requirements
- Use the appropriate journal to record the preceding transactions in a sales journal (omit the Invoice No. column) and a cash receipts journal (omit the Sales Discounts Forfeited column).
- Total each column of the sales journal and the cash receipts journal. Determine that total debits equal total credits.
- Show how postings would be made from the journals by writing the account numbers and check marks in the appropriate places in the journals.
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