create a journal entry and t accounts using the following transaction of august. 1 Garcia invested Php48000 cash in the business 1 Rented office space and paid Php800 cash for the August rent 3 Purchased exploration equipment for Php22000 by paying cash and agreeing to pay the balance in 3 months 5 Purchased office supplies by paying Php1500 cash 6 Completed exloration work and immediately collected Php420 cash for the work 8 Purchased Php1350 of office equipment on credit 15 Completed exploration work on credit in the amount of Php8000 18 Purchased Php700 of office supplies on credit 20 Paid cash for the office equipment purchased on August 8 24 Billed a client Php2400 for work completed; the balance is due in 30 days 28 Received Php5000 cash for the work completed on August 15 30 Paid the assistant's salary of Php1100 cash for this month 30 Paid Php340 cash for this month's utility bill 30 Garcia withdrew Php1050 cash from the business for personal use
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.
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1 Garcia invested Php48000 cash in the business
1 Rented office space and paid Php800 cash for the August rent
3 Purchased exploration equipment for Php22000 by paying cash and agreeing to pay the balance in 3 months
5 Purchased office supplies by paying Php1500 cash
6 Completed exloration work and immediately collected Php420 cash for the work
8 Purchased Php1350 of office equipment on credit
15 Completed exploration work on credit in the amount of Php8000
18 Purchased Php700 of office supplies on credit
20 Paid cash for the office equipment purchased on August 8
24 Billed a client Php2400 for work completed; the balance is due in 30 days
28 Received Php5000 cash for the work completed on August 15
30 Paid the assistant's salary of Php1100 cash for this month
30 Paid Php340 cash for this month's utility bill
30 Garcia withdrew Php1050 cash from the business for personal use
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