Bob Night opened The General’s Favorite Fishing Hole. The fishing camp is open from April through September and attracts many famous college basketball coaches during the off-season. Guests typically register for one week, arriving on Sunday afternoon and returning home the following Saturday afternoon. The registration fee includes room and board, the use of fishing boats, and professional instruction in fishing techniques. The chart of accounts for the camping operations is provided below. Enter the transactions in a general journal. Enter transactions from April 1–5 on page 1, April 7–18 on page 2, April 21–29 and the first two entries for April 30 on page 3, and the remaining entries for April 30 on page 4. Post the entries to the general ledger. Prepare a trial balance on a work sheet. Complete the work sheet. Journalize the adjusting entries. Post the adjusting entries to the general ledger. The following transactions took place during April 20--. Apr. 1 Night invested cash in business, $90,000. 1 Paid insurance premium for six-month camping season, $9,000. 2 Paid rent for lodge and campgrounds for the month of April, $40,000. 2 Deposited registration fees, $35,000. 2 Purchased 10 fishing boats on account for $60,000. The boats have estimated useful lives of five years, at which time they will be donated to a local day camp. Arrangements were made to pay for the boats in July. 3 Purchased food supplies from Acme Super Market on account, $7,000. 5 Purchased office supplies from Gordon Office Supplies on account, $500. 7 Deposited registration fees, $38,600. 10 Purchased food supplies from Acme Super Market on account, $8,200. 10 Paid wages to fishing guides, $10,000. 14 Deposited registration fees, $30,500. 16 Purchased food supplies from Acme Super Market on account, $9,000. 17 Paid wages to fishing guides, $10,000. 18 Paid postage, $150. 21 Deposited registration fees, $35,600. 24 Purchased food supplies from Acme Super Market on account, $8,500. 24 Paid wages to fishing guides, $10,000. 28 Deposited registration fees, $32,000. 29 Paid wages to fishing guides, $10,000. 30 Purchased food supplies from Acme Super Market on account, $6,000. 30 Paid Acme Super Market on account, $32,700. 30 Paid utilities bill, $2,000. 30 Paid phone bill, $1,200. 30 Bob Night withdrew cash for personal use, $6,000. Adjustment information for the end of April is provided below. (a) Office supplies remaining on hand, $100. (b) Food supplies remaining on hand, $8,000. (c) Insurance expired during the month of April, $1,500. (d) Depreciation on the fishing boats for the month of April, $1,000. (e) Wages earned, but not yet paid, at the end of April, $500. CHART OF ACCOUNTS The General’s Favorite Fishing Hole General Ledger ASSETS 101 Cash 122 Accounts Receivable 142 Office Supplies 144 Food Supplies 145 Prepaid Insurance 181 Fishing Boats 181.1 Accumulated Depreciation-Fishing Boats LIABILITIES 202 Accounts Payable 219 Wages Payable EQUITY 311 Bob Night, Capital 312 Bob Night, Drawing 313 Income Summary REVENUE 401 Registration Fees EXPENSES 511 Wages Expense 521 Rent Expense 523 Office Supplies Expense 524 Food Supplies Expense 525 Phone Expense 533 Utilities Expense 535 Insurance Expense 536 Postage Expense 542 Depreciation Expense-Fishing Boats Amount Descriptions Net Income Net Loss
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.
Bob Night opened The General’s Favorite Fishing Hole. The fishing camp is open from April through September and attracts many famous college basketball coaches during the off-season. Guests typically register for one week, arriving on Sunday afternoon and returning home the following Saturday afternoon. The registration fee includes room and board, the use of fishing boats, and professional instruction in fishing techniques. The chart of accounts for the camping operations is provided below.
- Enter the transactions in a general journal. Enter transactions from April 1–5 on page 1, April 7–18 on page 2, April 21–29 and the first two entries for April 30 on page 3, and the remaining entries for April 30 on page 4.
Post the entries to the general ledger.- Prepare a
trial balance on a work sheet. - Complete the work sheet.
- Journalize the
adjusting entries . - Post the adjusting entries to the general ledger.
The following transactions took place during April 20--.
Apr. 1 Night invested cash in business, $90,000.
1 Paid insurance premium for six-month camping season, $9,000.
2 Paid rent for lodge and campgrounds for the month of April, $40,000.
2 Deposited registration fees, $35,000.
2 Purchased 10 fishing boats on account for $60,000. The boats have estimated useful lives of five years, at which time they will be donated to a local day camp. Arrangements were made to pay for the boats in July.
3 Purchased food supplies from Acme Super Market on account, $7,000.
5 Purchased office supplies from Gordon Office Supplies on account, $500.
7 Deposited registration fees, $38,600.
10 Purchased food supplies from Acme Super Market on account, $8,200.
10 Paid wages to fishing guides, $10,000.
14 Deposited registration fees, $30,500.
16 Purchased food supplies from Acme Super Market on account, $9,000.
17 Paid wages to fishing guides, $10,000.
18 Paid postage, $150.
21 Deposited registration fees, $35,600.
24 Purchased food supplies from Acme Super Market on account, $8,500.
24 Paid wages to fishing guides, $10,000.
28 Deposited registration fees, $32,000.
29 Paid wages to fishing guides, $10,000.
30 Purchased food supplies from Acme Super Market on account, $6,000.
30 Paid Acme Super Market on account, $32,700.
30 Paid utilities bill, $2,000.
30 Paid phone bill, $1,200.
30 Bob Night withdrew cash for personal use, $6,000.
Adjustment information for the end of April is provided below.
(a) Office supplies remaining on hand, $100.
(b) Food supplies remaining on hand, $8,000.
(c) Insurance expired during the month of April, $1,500.
(d) Depreciation on the fishing boats for the month of April, $1,000.
(e) Wages earned, but not yet paid, at the end of April, $500.
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CHART OF ACCOUNTS |
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The General’s Favorite Fishing Hole |
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General Ledger |
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Amount Descriptions |
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Net Income |
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Net Loss |
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