SALES AND CASH RECEIPTS TRANSACTIONS Paul Jackson owns a retail business. The following sales, returns, and cash receipts are for April 20--. There is a 7% sales tax.Apr. 1 Sale on account No. 111 to O. L. Meyers, $2,100 plus sales tax.3 Sale on account No. 112 to Andrew Plaa, $1,000 plus sales tax.6 O. L. Meyers returned merchandise from Sale No. 111 for a credit(Credit Memo No. 42), $50 plus sales tax.7 Cash sales for the week were $3,240 plus sales tax.9 Received payment from O. L. Meyers for Sale No. 111 less CreditMemo No. 42.12 Sale on account No. 113 to Melissa Richfield, $980 plus sales tax.14 Cash sales for the week were $2,180 plus sales tax.17 Melissa Richfield returned merchandise from Sale No. 113 for a credit(Credit Memo No. 43), $40 plus sales tax.19 Sale on account No. 114 to Kelsay Munkres, $1,020 plus sales tax.21 Cash sales for the week were $2,600 plus sales tax.24 Sale on account No. 115 to O. L. Meyers, $920 plus sales tax.27 Sale on account No. 116 to Andrew Plaa, $1,320 plus sales tax.28 Cash sales for the week were $2,800 plus sales tax.29 Received payment from Melissa Richfield for $2,186.Beginning general ledger account balances were:Cash $2,864.54Accounts Receivable 2,726.25Beginning customer account balances were:K. Munkres $ 482.00M. Richfield 2,244.25Required1. Record the transactions starting on page 7 of a general journal.2. Post from the journal to the general ledger and accounts receivable ledger accounts. Use account numbers as shown in the chapter.
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.
SALES AND CASH RECEIPTS TRANSACTIONS Paul Jackson owns a retail business. The following sales, returns, and cash receipts are for April 20--. There is a 7% sales tax.
Apr. 1 Sale on account No. 111 to O. L. Meyers, $2,100 plus sales tax.
3 Sale on account No. 112 to Andrew Plaa, $1,000 plus sales tax.
6 O. L. Meyers returned merchandise from Sale No. 111 for a credit
(Credit Memo No. 42), $50 plus sales tax.
7 Cash sales for the week were $3,240 plus sales tax.
9 Received payment from O. L. Meyers for Sale No. 111 less Credit
Memo No. 42.
12 Sale on account No. 113 to Melissa Richfield, $980 plus sales tax.
14 Cash sales for the week were $2,180 plus sales tax.
17 Melissa Richfield returned merchandise from Sale No. 113 for a credit
(Credit Memo No. 43), $40 plus sales tax.
19 Sale on account No. 114 to Kelsay Munkres, $1,020 plus sales tax.
21 Cash sales for the week were $2,600 plus sales tax.
24 Sale on account No. 115 to O. L. Meyers, $920 plus sales tax.
27 Sale on account No. 116 to Andrew Plaa, $1,320 plus sales tax.
28 Cash sales for the week were $2,800 plus sales tax.
29 Received payment from Melissa Richfield for $2,186.
Beginning general ledger account balances were:
Cash $2,864.54
Accounts Receivable 2,726.25
Beginning customer account balances were:
K. Munkres $ 482.00
M. Richfield 2,244.25
Required
1. Record the transactions starting on page 7 of a general journal.
2. Post from the journal to the general ledger and accounts receivable ledger accounts. Use account numbers as shown in the chapter.
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