The COVID-24 Food Kitchen provides hot meals to homeless and low-income individuals and families. It is the policy of the Food Kitchen to use restricted resources for which the purpose has been met before resources without donor restrictions. The COVID-24 Food Kitchen had the following revenue and expense transactions during 20X1. 1. The Food Kitchen received a $10,000 federal grant for the purchase of institutional kitchen equipment. 2. A local grocery store donated fresh produce with a fair value of $250. The food was used immediately. 3. Volunteers from a local civic group donated 150 hours to preparation and serving meals. The estimated fair market value of the labor was $1,200. 4. A local philanthropist donated $3,500 which was to be used for the purchase of food for Thanksgiving dinner. 5. The Food Kitchen received $30,000 of cash donations without restrictions. 6. The kitchen spent $5,200 on food for preparation of the Thanksgiving dinner. Required: Prepare journal entries to record the transactions. Submit your responses to the questions in an Excel spreadsheet. Label each entry clearly.
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.
Please share an explanation with each
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
