Please indicate if this will be included in the company’s cash and cash equivalent account as of December 2015. Explain each. How much C & CE must be included? A customer’s check dated January 1, 2016, USD 45,000. A customer’s certified check, USD 35,000. Various customer checks in payment of accounts with the company, USD 321,000. Company’s check dated December 26, 2015, drawn and recorded in December in payment of merchandise purchased on account but not delivered until January 7, 2016, USD 90,000. Company’s check dated January 3, 2016, drawn and recorded in December for payment of previously accrued electricity bill, USD 62,000. Investment in mutual funds, USD 312, 000 Redemption Fund amounting to USD 250, 000 that will be used in 2020 for a share repurchase program. PPE Acquisition fund amounting to USD 500, 000 that will be used on January 15, 2016
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 indicate if this will be included in the company’s cash and cash equivalent account as of December 2015. Explain each. How much C & CE must be included?
- A customer’s check dated January 1, 2016, USD 45,000.
- A customer’s certified check, USD 35,000.
- Various customer checks in payment of accounts with the company, USD 321,000.
- Company’s check dated December 26, 2015, drawn and recorded in December in payment of merchandise purchased on account but not delivered until January 7, 2016, USD 90,000.
- Company’s check dated January 3, 2016, drawn and recorded in December for payment of previously accrued electricity bill, USD 62,000.
- Investment in mutual funds, USD 312, 000
- Redemption Fund amounting to USD 250, 000 that will be used in 2020 for a share repurchase program.
- PPE Acquisition fund amounting to USD 500, 000 that will be used on January 15, 2016
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