Jan. Sold merchandise on account to Black Tie Co., $28,000. The cost 21. of merchandise sold was $16,800. Mar. Accepted a 60-day, 6% note for $28,000 from Black Tie Co. on |аccount. 18. May Received from Black Tie Co. the amount due on the note of 17. March 18. June Sold merchandise on account to Pioneer Co. for $17,700. The cost of merchandise sold was $10,600. 15. 21. Loaned $18,000 cash to JR Stutts, receiving a 30-day, 8% note. Received from Pioneer Co. the amount due on the invoice of 25. June 15. Received the interest due from JR Stutts and a new 60-day, 9% July note as a renewal of the loan of June 21. (Record both the debit 21. and the credit to the notes receivable account.) Sept. Received from JR Stutts the amount due on her note of July 21. 19. Sold merchandise on account to Wycoff Co., $20,000. The cost of merchandise sold was $12,000. 22. Oct. Accepted a 30-day, 6% note for $20,000 from Wycoff Co. on 14. асcount. Nov. Wycoff Co. dishonored the note dated October 14. 13. Received from Wycoff Co. the amount owed on the dishonored note, plus interest for 45 days at 8% computed on the maturity Dec. 28. value of the note.
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.
Sales and notes receivable transactions
The following were selected from among the transactions completed
during the current year by Danix Co., an appliance wholesale company:
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