Zucker Management Services opened for business and completed these transactions in November. Nov. 1 Matt Zucker, the owner, invested $30,000 cash along with $15,000 of office equipment in the company. 2 The company prepaid $4,500 cash for six months’ rent for an office. Hint: Debit Prepaid Rent for $4,500. 4 The company made credit purchases of office equipment for $2,500 and of office supplies for $600. Payment is due within 10 days. 8 The company completed work for a client and immediately received $3,400 cash. 12 The company completed a $10,200 project for a client, who must pay within 30 days. 13 The company paid $3,100 cash to settle the payable created on November 4. 19 The company paid $1,800 cash for the premium on a 24-month insurance policy. 22 The company received $5,200 cash as partial payment for the work completed on November 12. 24 The company completed work for another client for $1,750 on credit. 28 M. Zucker withdrew $5,300 cash from the company for personal use. 29 The company purchased $249 of additional office supplies on credit. 30 The company paid $831 cash for this month’s utility bill. Required 1. Prepare general journal entries to record these transactions (use account titles listed in part 2). 2. Open the following ledger accounts—their account numbers are in parentheses (use the balance column format): Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); M. Zucker, Capital (301); M. Zucker, Withdrawals (302); Services Revenue (403); and Utilities Expense (690). Post the journal entries from part 1 to the ledger accounts and enter the balance after each posting. 3. Prepare a trial balance as of the end of November.
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.
Zucker Management Services opened for business and completed these transactions in November.
Nov. 1 Matt Zucker, the owner, invested $30,000 cash along with $15,000 of office equipment in the
company.
2 The company prepaid $4,500 cash for six months’ rent for an office. Hint: Debit Prepaid Rent
for $4,500.
4 The company made credit purchases of office equipment for $2,500 and of office supplies for
$600. Payment is due within 10 days.
8 The company completed work for a client and immediately received $3,400 cash.
12 The company completed a $10,200 project for a client, who must pay within 30 days.
13 The company paid $3,100 cash to settle the payable created on November 4.
19 The company paid $1,800 cash for the premium on a 24-month insurance policy.
22 The company received $5,200 cash as partial payment for the work completed on November 12.
24 The company completed work for another client for $1,750 on credit.
28 M. Zucker withdrew $5,300 cash from the company for personal use.
29 The company purchased $249 of additional office supplies on credit.
30 The company paid $831 cash for this month’s utility bill.
Required
1. Prepare general
2. Open the following ledger accounts—their account numbers are in parentheses (use the balance column
format): Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128);
Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); M. Zucker, Capital (301);
M. Zucker, Withdrawals (302); Services Revenue (403); and Utilities Expense (690).
entries
3. Prepare a
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