On August 1, 2020 Mark Diamond began a tour company in Northwest Territories called Millennium Artic Tours. The following occurred during the first month operations: Aug 1 Purchased office furniture on account; $4,700 1 Mark Diamond invested $6,100 cash into his new business 2 Collected $2,550 in advance for a three-week guided caribou watching tour beginning later in August 3 Paid $4,650 for six months rent for office space effective August 1 4 Received $2,100 for a four-day northern lights viewing tour just completed 7 Paid $1,050 for hotel expenses regarding the August 4 tour 15 Mark withdrew cash of $600 for personal use 22 Met with a Japanese tour guides to discuss a $100,000 tour contract 31 Paid wages of $1,210 Prepare general journal entries to record the August transactions Set up the following T- accounts: Cash (101); Prepaid Rent (131); office furniture ( 161); Accumulated Depreciation, office furniture (162); Accounts Payable (201); Unearned revenue (233); Mark Diamond, capital (301); Mark Diamond, Withdrawals (302); Revenue (401); Depreciation Expense, Office Furniture (602); Wages Expense (623); Rent Expense (640); Telephone Expense (688); and Hotel Expenses (696) Post the entries to the accounts; calculate the ending balance in each account. Prepare an unadjusted trail balance at August 31, 2020 Use the following information to prepare and posting adjusting entries on August 31: The office furniture has an estimated life of three years and a $272 residual value. Use the straight-line method to depreciate the furniture Two- thirds of the August 2 advance has been earned One month of the prepaid rent has been used. The august telephone bill was received as of august 31 but amounted to $230 Prepare an adjusted trial balance Prepare an income statement, statement of changes in equity and a balance sheet Please answer it asap and read it carefully
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.
On August 1, 2020 Mark Diamond began a tour company in Northwest Territories called Millennium Artic Tours. The following occurred during the first month operations:
Aug 1 Purchased office furniture on account; $4,700
1 Mark Diamond invested $6,100 cash into his new business
2 Collected $2,550 in advance for a three-week guided caribou watching tour beginning later in August
3 Paid $4,650 for six months rent for office space effective August 1
4 Received $2,100 for a four-day northern lights viewing tour just completed
7 Paid $1,050 for hotel expenses regarding the August 4 tour
15 Mark withdrew cash of $600 for personal use
22 Met with a Japanese tour guides to discuss a $100,000 tour contract
31 Paid wages of $1,210
- Prepare general
journal entries to record the August transactions - Set up the following T- accounts: Cash (101); Prepaid Rent (131); office furniture ( 161);
Accumulated Depreciation , office furniture (162); Accounts Payable (201); Unearned revenue (233); Mark Diamond, capital (301); Mark Diamond, Withdrawals (302); Revenue (401); Depreciation Expense, Office Furniture (602); Wages Expense (623); Rent Expense (640); Telephone Expense (688); and Hotel Expenses (696) - Post the entries to the accounts; calculate the ending balance in each account.
- Prepare an unadjusted trail balance at August 31, 2020
- Use the following information to prepare and posting
adjusting entries on August 31:- The office furniture has an estimated life of three years and a $272 residual value. Use the straight-line method to
depreciate the furniture - Two- thirds of the August 2 advance has been earned
- One month of the prepaid rent has been used.
- The august telephone bill was received as of august 31 but amounted to $230
- The office furniture has an estimated life of three years and a $272 residual value. Use the straight-line method to
- Prepare an adjusted
trial balance - Prepare an income statement, statement of changes in equity and a balance sheet
Please answer it asap and read it carefully
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