process outsourcing services. The following were the transactions of Entity A during the year. 1. The owner provided an initial capital of P2,000,000 to the business. 2. The business acquired office equipment for P800,000 cash on January 1, 2021. the equipment has a useful life of 10 years. 3. The business paid two years rent in advance amounting to P720,000 on January 1, 2021. 4. Total services fees billed to client amounted to P2,900,000 on account. 5. Total payments for supplies expense amounted to P190,000. 6. Total payments for utilities expense amounted to P260,000.

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 resu…

Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

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 a…

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…

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 repor…