The company completed these transactions beginning October 16, 2020. Terms of all sales credit sales are 2/10, n/30 Oct. 16 Purchased office supplies on credit from Green Supply Company, $1,470. Invoice dated October 16, terms n/10 EOM. 16 Sold merchandise on credit to Heather Flatt, invoice # 916, $9,100. Cost, $5,270. 18 Issued a credit memo to Amy Izon for defective merchandise sold on October 15 and returned for credit, $400. The returned merchandise was scrapped. 19 Received a $1,280 credit memo from Walters Company for merchandise received on October 15 and returned for credit. 20 Received a $286 credit memo from Green Supply Company for office supplies received on October 16 and returned for credit. 20 Purchased store equipment on credit from Green Supply Company, invoice dated October 19, terms n/10 EOM, $14,800. 21 Sold merchandise on credit to Jan Wildman, invoice #917, $10,900. Cost, $6,320. 22 Received payment from Heather Flatt for the October 12 sale. 25 Received payment from Amy Izon for the October 15 sale. 25 Issued cheque # 623 to Walters Company in payment of its October 15 invoice. 25 Issued cheque # 624 to Sunshine Company in payment of its October 15 invoice. 28 Received merchandise with an invoice dated October 28, terms 2/10, n/60, from Sunshine Company, $12,950. 28 Sold a neighbouring merchant a carton of calculator tape (store supplies) for cash at cost, $116. 29 Marlee Levin, the owner of China Moon Products, used cheque # 625 to withdraw $8,000 cash from the business for personal use. 30 Issued cheque #626 to Midwest Electric Company in payment of the October electric bill, $1,240. 30 Issued cheque # 627 to Jamie Ford, the company's only sales employee, in payment of her salary for the last half of October, $3,260. 31 Cash sales for the last half of the month were $132,256. Cost, $76,700. Cash sales are usually recorded daily but are recorded only twice in this problem to reduce the repetitive transactions. ■
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.
Can you please assist me with recording the transactions in a general journal, terms of all credit sales are 2/10, n/30.
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