Please donot provide solution in image format and provide solution in step by step format and provide it asap OСТ: 10/1 - $1,500 rent check cut & mailed to landlord for office 10/3 - $213 Office supplies ordered online using Office Depot credit account 10/5 - $5,000 payment received from client/customer for services provided in Oct 10/7 - $2,050 payroll direct deposited to employees 10/15 - $10,000 payment received from client/customer for services provided in Oct 10/22 - $2,050 payroll direct deposited to employees NOV: 11/2 - $1,500 rent check cut & mailed to landlord for office 11/4 - $6,000 services rendered to client/customer but not yet paid 11/7 - $2,050 payroll direct deposited to employees 11/13 - $45,000 small biz loan obtained (5% APR, 2 years int only, 365 basis) 11/22 - $2,050 payroll direct deposited to employees 11/30 - $3,013 annual business insurance renewed (policy covers Dec - Nov) DEC: 12/1 - $1,500 rent check cut & mailed to landlord for office 12/7 - $2,050 payroll direct deposited to employees 12/13 - $ interest payment directly debited from bank account for SBL 12/18 - $9,744 cash spent on company holiday party 12/22 - $7,050 payroll direct deposited to employees 12/28 - $5,000 payment received from client/customer for November services Using this information prepare the Taccounts for liabilities
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.
Please donot provide solution in image format and provide solution in step by step format and provide it asap
OСТ:
10/1 - $1,500 rent check cut & mailed to landlord for office
10/3 - $213 Office supplies ordered online using Office Depot credit account
10/5 - $5,000 payment received from client/customer for services provided in Oct
10/7 - $2,050 payroll direct deposited to employees
10/15 - $10,000 payment received from client/customer for services provided in Oct
10/22 - $2,050 payroll direct deposited to employees
NOV:
11/2 - $1,500 rent check cut & mailed to landlord for office
11/4 - $6,000 services rendered to client/customer but not yet paid
11/7 - $2,050 payroll direct deposited to employees
11/13 - $45,000 small biz loan obtained (5% APR, 2 years int only, 365 basis)
11/22 - $2,050 payroll direct deposited to employees
11/30 - $3,013 annual business insurance renewed (policy covers Dec - Nov)
DEC:
12/1 - $1,500 rent check cut & mailed to landlord for office
12/7 - $2,050 payroll direct deposited to employees
12/13 - $ interest payment directly debited from bank account for SBL
12/18 - $9,744 cash spent on company holiday party
12/22 - $7,050 payroll direct deposited to employees
12/28 - $5,000 payment received from client/customer for November services
Using this information prepare the Taccounts for liabilities
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