red mineral nghs tor $2050.000 The mineral deposit Backwoods General Ledger unt of depletion expense tor the ccurent year sting entry on December 31 recognce the depletion epense Refer to the chart of accounts for the eact wording of the REVENUE ASSETS OW joumals do not use ines for oumal explanations Every Ine on a jouma page is used for debt or credt entres CNOW 410 Sales 110 Cash Cain maticaly indent a ceat entry when a credt amount is entered 610 interest Revenue 111 Petty Cash 620 Gain on Sale of Delivery Truck 112 Accounts Receivable 114 interest Recevable 621 Gan on Sale of Equpment 115 Notes Receivable 622 Gain on Sale of Mineral Rights 116 Merchandse inventory ut of depleton epense for the curent year S 117 Supplies EXPENSES 510 Cost of Merchandise Sold 119 Prepaid insurance 520 Salaries Expense 120 Land 521 Advertsing Expense 123 Delivery Truck 124 Accumulated Depreciation Delivery Truck 522 Depreciation Expense Delivery Truck 125 Equpment 523 Delivery Expense 126 Accumulated Depreciation Equpment 524 Repars and Mantenance Expense 130 Mineral Rights 529 Seling Expenses 131 Accumulated Depletion 531 Rent Expense 132 Goodwl 532 Depreciation Expense Equpmert 133 Patents 533 Depleton Expense 534 Amortication Expense-Patents LIABLITIE S 535 insurance Expense 210 Accounts Payable 536 Supples Expense eadting enty on December 31ecognce the depleton epene Reler o he chart of accounts for the exact wording of the account es CNOWoumals do not use ines for joumal Every ine on a uma page ed tor d or oedteres CNOWumas automatcaly ndenta credst entry when a credt amount a entered 211 Salanes Payable 539 Mscellaneous Expense 213 Sales Tax Payable 710 interest Expense 214 interest Paayable 720 Loss on Sale of Delivery Truck 215 Notes Payable 721 Loss on Sale of Equpment JOURNAL ACCOUNTING EQUATION 722 Los on Sale of Mineral Rights CE L TS EQUITY Mtn e 310 Ouners Captal 311 Owners Drawing
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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