Vaughn Corporation makes blenders (its merchandise) and entered into the following transactions during the month of September 2017. Sept. 2 Purchased merchandise from Jones Company on credit for $4,330. Credit terms were 2/10, n/30. 3. Paid $240 for the delivery charges on the merchandise purchased on September 2. Purchased merchandise from Moses Company on credit for $4,270. Credit terms were 3/10, n/30. 6 Sold merchandise for cash, $1,310. Purchased store equipment for $8,400 from Santa Corporation. A down payment of $3,900 was made, and a note was signed for the remaining balance. 6. Sold merchandise on credit to Stephanie Company for $1,200. The credit terms of the sale were 3/15, n/45. 10 Returned $230 of defective merchandise to Jones Company and received the appropriate credit. 11 Sold merchandise on credit to Michael Company for $1,400. The credit terms of the sale were 4/10, n/60. 12 Paid the balance due to Jones Company for the September 2 purchase. 15 Paid the employees' salaries of $11,500. 16 Paid the balance due to Moses Company for the September 5 purchase. 18 Stephanie Company returned damaged merchandise to the company and received credit of $200. 22 Received full payment from Michael Company for the September 11 sale. The company paid $470 for advertising. Received full payment from Stephanie Company for the September 9 sale. 23 23 25 Issued a check for full payment for the note given to Santa Corporation for the purchase made on September 8. 28 Purchased mer ndise for cash, $3,400. Using the periodic inventory system, prepare the entries in the general journal for the above transactions. Omit explanations. (Credit account titles are automatically ind amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.)
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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