S. Marion, a speech therapist, opened a clinic in the name of Marion Clinic. Her accountant prepared the following chart of accounts: Assets Revenue Cash Professional Fees Accounts Receivable Office Equipment Expenses Office Furniture Salary Expense Rent Expense Liabilities Utilities Expense Accounts Payable Miscellaneous Expense Owner's Equity S. Marion, Capital S. Marion, Drawing The following transactions occurred during June of this year: Marion deposited $46,000 in a bank account in the name of the business. Bought waiting room chairs and tables (Office Furniture) on account, $1,500. Bought a fax/copier/scanner combination (Office Equipment) from Max's Equipment for $1,000, paying $395 in cash and placing the balance on account, Ck. No. 1001. Bought an intercom system (Office Equipment) on account from Regan Office Supply, $550. Received and paid the telephone bill, $220, Ck. No. 1002. Sold professional services on account, $1,764. Received and paid the electric bill, $150, Ck. No. 1003. Received and paid the bill for the state speech therapy convention, $600, Ck. No. 1004 (Miscellaneous Expense). Sold professional services for cash, $3,510. Paid on account to Regan Office Supply, $330, Ck. No. 1005. Paid the rent for the current month, $900, Ck. No. 1006. Paid salary of the receptionist, $940, Ck. No. 1007. Marion withdrew cash for personal use, $800, Ck. No. 1008. Received $800 on account from patients who were previously billed. Required: Under each of the following T accounts, select either a plus or minus sign on the left side to indicate whether a Debit increases or decreases the classification or account and select either a plus or minus sign on the right side to indicate whether a credit increases or decreases the classification or account. Record the amounts in the proper positions in the T accounts. Record the amounts in the order given (letters 'a' through 'n'). Foot the T accounts and show the balances. Cash + - Debit Credit Bal. Accounts Payable - + Debit Credit Bal. Accounts Receivable - + Debit Credit Bal. S. Marion, Capital - + Debit Credit Bal.
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.
S. Marion, a speech therapist, opened a clinic in the name of Marion Clinic. Her accountant prepared the following chart of accounts:
| Assets | Revenue |
| Cash | Professional Fees |
| Accounts Receivable | |
| Office Equipment | Expenses |
| Office Furniture | Salary Expense |
| Rent Expense | |
| Liabilities | Utilities Expense |
| Accounts Payable | Miscellaneous Expense |
| Owner's Equity | |
| S. Marion, Capital | |
| S. Marion, Drawing |
The following transactions occurred during June of this year:
- Marion deposited $46,000 in a bank account in the name of the business.
- Bought waiting room chairs and tables (Office Furniture) on account, $1,500.
- Bought a fax/copier/scanner combination (Office Equipment) from Max's Equipment for $1,000, paying $395 in cash and placing the balance on account, Ck. No. 1001.
- Bought an intercom system (Office Equipment) on account from Regan Office Supply, $550.
- Received and paid the telephone bill, $220, Ck. No. 1002.
- Sold professional services on account, $1,764.
- Received and paid the electric bill, $150, Ck. No. 1003.
- Received and paid the bill for the state speech therapy convention, $600, Ck. No. 1004 (Miscellaneous Expense).
- Sold professional services for cash, $3,510.
- Paid on account to Regan Office Supply, $330, Ck. No. 1005.
- Paid the rent for the current month, $900, Ck. No. 1006.
- Paid salary of the receptionist, $940, Ck. No. 1007.
- Marion withdrew cash for personal use, $800, Ck. No. 1008.
- Received $800 on account from patients who were previously billed.
Required:
- Under each of the following T accounts, select either a plus or minus sign on the left side to indicate whether a Debit increases or decreases the classification or account and select either a plus or minus sign on the right side to indicate whether a credit increases or decreases the classification or account.
- Record the amounts in the proper positions in the T accounts. Record the amounts in the order given (letters 'a' through 'n').
- Foot the T accounts and show the balances.
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