Parrish 3-3 Please post the following transaction in a General Journal then transfer them to the appropriate General Ledger Account. 11/1 Jim Peterson starts Florida Ouboard Motor Repair by issuing 100 shares of non-par common stock to himself for $10,000. Hes deposits the cash to his business checking account at First National Bank 11/2 Jim gets $5,000 loan from First National Bank to use for additional start-up funds. The loan is due in one year with 5% interest. The bank deposits the proceeds in Jim's buiness checking account 11/2 Jim rents space for a repair shop for one month and pays $800 cash 11/3 Jim buys equipment for $200 and pays cash 11/3 Jim buys parts inventory for $500 cash 11/4 Don Noble, Jim's first customer asks Jim to repair a boat motor. Jim uses parts cost $30. He gives Jim a check for $160
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.
Parrish 3-3
Please
11/1 Jim Peterson starts Florida Ouboard Motor Repair by issuing 100 shares of non-par common stock to himself for $10,000. Hes deposits the cash to his business checking account at First National Bank
11/2 Jim gets $5,000 loan from First National Bank to use for additional start-up funds. The loan is due in one year with 5% interest. The bank deposits the proceeds in Jim's buiness checking account
11/2 Jim rents space for a repair shop for one month and pays $800 cash
11/3 Jim buys equipment for $200 and pays cash
11/3 Jim buys parts inventory for $500 cash
11/4 Don Noble, Jim's first customer asks Jim to repair a boat motor. Jim uses parts cost $30. He gives Jim a check for $160
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