On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $20,000. Paid rent on office and equipment for the month, $3,700. Purchased supplies on account, $1,090. Paid creditor on account, $400. Earned fees, receiving cash, $16,800. Paid automobile expenses (including rental charge) for month, $1,020, and miscellaneous expenses, $690. Paid office salaries, $2,150. Determined that the cost of supplies used was $600. Withdrew cash for personal use, $990. 2. Prepare T accounts, using the account titles in (1). Post the journal entries to these T accounts, selecting the appropriate letter to the left of each amount to identify the transactions. Determine the account balances (when required), after all posting is complete, for all accounts having two or more debits or credits. 3. Prepare an unadjusted trial balance as of January 31, 2019. For those boxes in which no entry is required, leave the box blank. 4. As a result of the January transactions (a-i), determine the following: a. Amount of total revenue recorded in the ledger. $fill in the blank f68ea0084fef030_1 b. Amount of total expenses recorded in the ledger. $fill in the blank f68ea0084fef030_2 c. Amount of net income for January. $fill in the blank f68ea0084fef030_3 5. Determine the total increase or decrease in owner's equity for January. $fill in the blank f68ea0084fef030_4
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.
On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month:
- Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $20,000.
- Paid rent on office and equipment for the month, $3,700.
- Purchased supplies on account, $1,090.
- Paid creditor on account, $400.
- Earned fees, receiving cash, $16,800.
- Paid automobile expenses (including rental charge) for month, $1,020, and miscellaneous expenses, $690.
- Paid office salaries, $2,150.
- Determined that the cost of supplies used was $600.
- Withdrew cash for personal use, $990.
2. Prepare T accounts, using the account titles in (1).
3. Prepare an unadjusted
-
4. As a result of the January transactions (a-i), determine the following:
a. Amount of total revenue recorded in the ledger.
$fill in the blank f68ea0084fef030_1b. Amount of total expenses recorded in the ledger.
$fill in the blank f68ea0084fef030_2c. Amount of net income for January.
$fill in the blank f68ea0084fef030_35. Determine the total increase or decrease in owner's equity for January.
$fill in the blank f68ea0084fef030_4
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