Prepare the Journal Mar. 1(a) Purchased children laptop toys from Esorbma Limited, $95,000, terms 1/10, n/30, FOB shipping point. (b)The responsible party paid the freight charges of $500. The goods were collected by the shipping company on 1 March and arrived at ITI’s warehouse on 4 March. 1(c) Sold 22,500 Treasury shares at $2 each. 1(d) Purchased 10% shareholding in Charlie Limited, a supplier, as a long-term investment. The fair value of the 10% shareholding was $2,900,000 as at 1 March. The purchase consideration included a $2,700,000 note receivable due from Charlie Limited and the related interest receivable balance of $144,000, $140,000 cash and a motor vehicle owned by ITI. The motor vehicle was originally obtained at $120,000. ( for depreciation details, refer to note (c) of additional information.) 1(e) Sold remote control helicopters valued at $296,000 to TnecNiv Limited, a wholesaler, terms n/20, FOB destination. The appropriate party paid delivery charges of $600. The goods were shipped on 1 March and arrived at the warehouse of TnecNiv Limited on 3 March. 2. A 10% share dividend was declared when the market value per share was $2.1. 3. Cash is received from TnecNiv Limited for the remote-control helicopters shipped on 1 March and arrived at the warehouse of TnecNiv Limited on 3 March. 4. Sold kids ride on cars to Vinga Limited, $140,000, terms n/30, FOB shipping point, 2% trade discount. The appropriate party paid freight charges of $400. The goods were shipped on 4 March and arrived at the warehouse of Vinga Limited on 6 March. 5. The management determined that the amount due from a customer, MYTOM Limited, $50,000 is uncollectible as the company has closed down. 6. Purchased supplies of $4,300 on account from Jimmy Printing and Stationery Limited. 7.(a) Paid cash to acquired 30,000 shares of its own at $2.3 each. ITI intends to keep the shares for several months for management bonus. 7.(b) Received credit memorandum of $1,700 from Esorbma Limited for goods purchased in March. 8. Granted Vinga Limited an allowance of $1,000 (original price) due to discrepancy in the color of the ride on cars
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.
Prepare the Journal
Mar. 1(a) Purchased children laptop toys from Esorbma Limited, $95,000, terms 1/10, n/30, FOB shipping point.
(b)The responsible party paid the freight charges of $500. The goods were collected by the shipping company on 1 March and arrived at ITI’s warehouse on 4 March.
1(c) Sold 22,500 Treasury shares at $2 each.
1(d) Purchased 10% shareholding in Charlie Limited, a supplier, as a long-term investment. The fair value of the 10% shareholding was $2,900,000 as at 1 March. The purchase consideration included a $2,700,000 note receivable due from Charlie Limited and the related interest receivable balance of $144,000, $140,000 cash and a motor vehicle owned by ITI. The motor vehicle was originally obtained at $120,000. ( for
1(e) Sold remote control helicopters valued at $296,000 to TnecNiv Limited, a wholesaler, terms n/20, FOB destination. The appropriate party paid delivery charges of $600. The goods were shipped on 1 March and arrived at the warehouse of TnecNiv Limited on 3 March.
2. A 10% share dividend was declared when the market value per share was $2.1.
3. Cash is received from TnecNiv Limited for the remote-control helicopters shipped on 1 March and arrived at the warehouse of TnecNiv Limited on 3 March.
4. Sold kids ride on cars to Vinga Limited, $140,000, terms n/30, FOB shipping point, 2% trade discount. The appropriate party paid freight charges of $400. The goods were shipped on 4 March and arrived at the warehouse of Vinga Limited on 6 March.
5. The management determined that the amount due from a customer, MYTOM Limited, $50,000 is uncollectible as the company has closed down.
6. Purchased supplies of $4,300 on account from Jimmy Printing and Stationery Limited.
7.(a) Paid cash to acquired 30,000 shares of its own at $2.3 each. ITI intends to keep the shares for several months for management bonus.
7.(b) Received credit memorandum of $1,700 from Esorbma Limited for goods purchased in March.
8. Granted Vinga Limited an allowance of $1,000 (original price) due to discrepancy in the color of the ride on cars.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
