Problem 18 Recording Transactions in T-Accounts and Preparing a Trial Balance Winston Apalisoc opened Cagayan Chiropractic Cinic. The following transactions occurred during June of this year: Apalisoc imvested P180,000 cash in the professional practice. Apalisoc Invested in the firm professional equipment with a fair market valuo of P72.000, Bought a filing cabinet on account from Andrews Office Essentials, P3,260. Paid cash for chairs for the waiting room, P4,620. Bought a multi-function printer for P15,400 from Main Office Machines, paying P7,400 down; the balance is due in thirty days 1. a. b. d. e. Received and paid telephone bill, P990. Billed patients for professional services performed, P16,120. Paid P1,800 as membership dues to the national chiropractic association Received and paid electric bill, P910. Received P6,900 from patients previously billed in transaction (g). k. h. Pald in full accounts related to purchase of a filing cabinet. Paid office rent for the month, PS.000. m. Received P2420 cash from walk-in patients. Paid salaries of nurse assistant, P8,250. Apalisor withdrew cash for persanal use, P11,500. n. Required: 1. Establish the following T-accounts: Cash; Accounts Receivable; Office Equipment; Medical Equipment; Accounts Payable; Apalisoc, Capital; Apalisoc, Withdrawals, Service Revenues: Salaries Expense: Rent Expense; Ulilities Expense and Miscellaneous Expense. 2 Record the transactions directly into the T-accounts using the alphabets to identify each transaction. 3. Prepare a trial balance.
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.
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