Exercises 1 Record the following transactions and use this Chart of Accounts. Feb 10 Her sister Anne, gave her 2,000 for the service to be conducted next week. Feb 11 Her friend received her service and ask that she will pay 1,500 next month. Feb 12 Total amount of service provided 4,000 Feb 13 Service provided worth 5,000. Feb 15 Paid employees. Feb 16 Hired model to promote her salon and paid 2,000. Feb 17 Purchased furniture and fixture worth 5,000. Feb 19 Barangay inspected her salon and required her to pay brgy permit. She paid 100 for that permit. Feb 20 Paid municipal business permit to make the operation legal amounting to 3,000. Feb 22 Total collected from customers amounting to 3,000. Feb 24 Provided service for her sister. Feb 25 Received Maynilad bill amounting to 567. Feb 26 Received payment from her friend amounting to 900. Feb 28. Paid salaries.
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.
Step by step
Solved in 2 steps
