Record your journal entries on the following two pages.
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.
NEED ANSWER ASAP
Super Dallas Recreation Inc. (“Super Dallas”) rents and sells boats and related water sports equipment. During
July 2022 Super Dallas engaged in the following transactions:
A. July 2: Received $ 31,800 in cash from customers for July rentals.
B. July 3: Purchased on credit five new pairs of water skis for $ 180 each to replace inventory sold in July.
C. July 6: Paid wages in July in cash to employees in the amount of $ 9,500. Of this amount, $1,500 had been
accrued at the end of June.
D. July 9: Paid August and July office rent in cash in the amount of $ 1,500 for each month.
E. July 12: Purchased a new Ford truck for $ 38,700. Super Dallas paid $ 1,000 cash down and received a loan
from Royal Bank for $ 37,700 to pay the balance.
F. July 13: An amount of $ 1,100 was collected on an outstanding account receivable.
G. July 16: Paid in cash an account payable outstanding at June 30 in the amount of $ 970.
H. July 27: Super Dallas paid in cash the monthly telephone bill for July of $ 165
I. July 28: The sole shareholder of Super Dallas purchased a new home for his family in cash at a cost of
$445,000
J. July 29: Super Dallas received $ 145,000 from a customer as full payment for a boat to be shipped to the
customer in August.
K. July 31: Super Dallas paid an advertising bill for August advertising in cash in the amount of $ 1,350.
Required
Prepare the
general ledger of Super Dallas along with a brief description/narrative to support the entry if necessary. If no
journal entry is required for the item, please indicate “No J/E Required” in the account column. Record your
journal entries on the following two pages.
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