rom each of the following December 31 adjusting journal entries, prepare the original journal entry that was recorded by supplying the blanks provided. The first one is already done for you. You may print and write the answers or encode the answers immediately. Prepaid Insurance 240 Insurance Expense 240 Supplies Expense 1,200 Supplies 1,200 Rent Revenue 6,300 Unearned Rent Revenues 6,300 Unearned Commissions Revenue 4,200 Commissions Revenue 4,200 Additional Information: Yearly insurance premium is effective and payable every March 1. Supplies are purchased every May 1 and are used evenly throughout the year. Annual rent is received every April 1. Commissions are collected every June 1 and earned evenly throughout the year. Original Journal Entries 1.(example) Debit: Insurance Expense 1,440 Credit: Cash 1,440 2. Debit: __________________ Credit: __________________ 3. Debit: __________________ Credit: __________________ 4. Debit: __________________ Credit: __________________
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.
From each of the following December 31
- Prepaid Insurance 240
Insurance Expense 240
- Supplies Expense 1,200
Supplies 1,200
- Rent Revenue 6,300
Unearned Rent Revenues 6,300
- Unearned Commissions Revenue 4,200
Commissions Revenue 4,200
Additional Information:
- Yearly insurance premium is effective and payable every March 1.
- Supplies are purchased every May 1 and are used evenly throughout the year.
- Annual rent is received every April 1.
- Commissions are collected every June 1 and earned evenly throughout the year.
Original Journal Entries
1.(example)
Debit: Insurance Expense 1,440
Credit: Cash 1,440
2.
Debit: __________________
Credit: __________________
3.
Debit: __________________
Credit: __________________
4.
Debit: __________________
Credit: __________________
Step by step
Solved in 2 steps
