Joel Feliciano Communications is a public relation firm. During the month of August, the entity completed the following transactions: Aug.2 Paid rent for August, P6,500 3 Received cash from customers on account, P23,000 Ordered supplies P3,800 10 Billed customers for services rendered, P28,000 Made a payment on accounts payable, P11,000. 14 Received the supplies ordered on August 7 and agreed to pay in thirty days, P3,800 Paid salaries for the first half of August, P19,000 17 Discovered some of the supplies were not as ordered and returned them in full credit, P800. 19 Received cash from a customer for services rendered, P48,000 Paid the electric and water bill for August, P1,600 25 Paid the telephone bill for August, P1,200. Received a bill, to be paid in September, for advertisement placed in a national newspaper during the month of August to promote Joel Feliciano Communications, P7,000 29 Billed a customer for services rendered, P27,000 30 Paid salaries for the second half of August, P19,000 31 12 15 24 26 Withdrew cash for personal use, P12,000 Required: Prepare the journal entries for the August transactions using General Journal page 22 and 23 Open the following accounts in the ledger: Cash (111), P102,000; Accounts Receivable (113), P55,000.00; Supplies (115), P6,100; Office Equipment (141), P42,000; Accounts Payable (211), P26,000; Feliciano, Capital (311), P179,100; Feliciano, Withdrawals (312); Public Relations Revenues (411); Salaries Expense (511); Rent Expense (521); Utilities Expense (513); and Advertising Expense (514). Post entries to the ledger accounts. Make the appropriate posting references in the journal and ledger. Prepare a trial balance. 1. 2. 3. 4.
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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
