The following partial work sheet covers the affairs of Masanto and Company for the year ended June 30. Masanto and Company Work Sheet For Year Ended June 30, 20-- 1 Income Statement Income Statement Balance Sheet Balance Sheet 2 Account Name Debit Credit Debit Credit 3 Cash 21,034.00 4 Accounts Receivable 89,016.00 5 Merchandise Inventory 116,400.00 6 Prepaid Insurance 3,210.00 7 Delivery Equipment 12,400.00 8 Accumulated Depreciation, Delivery Equipment 4,600.00 9 Store Equipment 30,400.00 10 Accumulated Depreciation, Store Equipment 8,700.00 11 Accounts Payable 55,300.00 12 P. R. Masanto, Capital 172,720.00 13 P. R. Masanto, Drawing 26,000.00 14 Sales 516,000.00 15 Purchases 399,101.00 16 Purchases Returns and Allowances 9,600.00 17 Purchases Discounts 6,800.00 18 Freight In 14,000.00 19 Salaries Expense 46,000.00 20 Delivery Equipment Expense 10,600.00 21 Supplies Expense 2,700.00 22 Miscellaneous Expense 1,459.00 23 24 Income Summary 112,200.00 116,400.00 25 Salaries Payable 1,240.00 26 Insurance Expense 2,840.00 27 Depreciation Expense, Delivery Equipment 1,400.00 28 Depreciation Expense, Store Equipment 2,600.00 29 Total 592,900.00 648,800.00 298,460.00 242,560.00 30 Net Income 55,900.00 55,900.00 31 Total $648,800.00 $648,800.00 $298,460.00 $298,460.00 Required: 1. Journalize the six adjusting entries. 2. Journalize the closing entries. 3. Journalize the reversing entry as of July 1, for the salaries that were accrued in the June adjusting entry.
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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Masanto and Company
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Work Sheet
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For Year Ended June 30, 20--
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1
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Income Statement
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Income Statement
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Balance Sheet
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Balance Sheet
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2
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Account Name
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Debit
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Credit
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Debit
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Credit
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3
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Cash
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21,034.00
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4
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89,016.00
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5
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Merchandise Inventory
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116,400.00
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6
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Prepaid Insurance
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3,210.00
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7
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Delivery Equipment
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12,400.00
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8
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Accumulated
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4,600.00
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9
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Store Equipment
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30,400.00
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10
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Accumulated Depreciation, Store Equipment
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8,700.00
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11
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Accounts Payable
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55,300.00
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12
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P. R. Masanto, Capital
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172,720.00
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13
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P. R. Masanto, Drawing
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26,000.00
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14
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Sales
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516,000.00
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15
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Purchases
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399,101.00
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16
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Purchases Returns and Allowances
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9,600.00
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17
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Purchases Discounts
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6,800.00
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18
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Freight In
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14,000.00
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19
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Salaries Expense
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46,000.00
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20
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Delivery Equipment Expense
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10,600.00
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21
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Supplies Expense
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2,700.00
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22
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Miscellaneous Expense
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1,459.00
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23
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24
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Income Summary
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112,200.00
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116,400.00
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25
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Salaries Payable
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1,240.00
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26
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Insurance Expense
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2,840.00
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27
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Depreciation Expense, Delivery Equipment
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1,400.00
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28
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Depreciation Expense, Store Equipment
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2,600.00
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29
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Total
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592,900.00
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648,800.00
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298,460.00
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242,560.00
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30
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Net Income
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55,900.00
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55,900.00
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31
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Total
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$648,800.00
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$648,800.00
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$298,460.00
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$298,460.00
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| Required: | |
| 1. | Journalize the six |
| 2. | Journalize the closing entries. |
| 3. | Journalize the reversing entry as of July 1, for the salaries that were accrued in the June adjusting entry. |
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