Prepare journal entry Transactions: a) April 1- Mr. Song invested P100,000 cash and P 250,000 worth of machine in his business named Song Auto Shop b) April 5- Bought supplies P40,000 on credit to Kim Store c) April 7 - Received advanced payment from the customers, P30,000 d) April 11 -Paid salaries expense for her two assistants amounting to 12,500. e) April 17- Paid the 25,000 for the account to Kim Store. f) April 23 - Performed services for the cash payment received last April 7, P10,500. g) April 25 - Performed three auto repair services on account, P10,000 each. h) April 27 - Received and paid the bill for utilities, P4,500. i) April 29 - Collected 50% of the receivables from clients on account i) April 30 - Withdrew 4,000 for personal use. k) April 30 - Paid the following expenses: Advertising 1,000; Transportation 1,500; Miscellaneous 2,000 Use the following account titles and account numbers: 101 102 103 104 201 202 301 Cash Accounts Receivable Supplies Machine Accounts Payable Unearned Revenue Song, Capital 401 501 502 503 504 505 302 Song, Withdrawal Service Revenue Salaries Expense Utilities Expense Advertising Expense Transportation Expense Miscellaneous Expense
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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