Moving to anothe Question 2 Prepare the journal entry for the following transactions for Famous Company. Famous Company is a devices. Aug 1 Purchased 8,000 BD of merchandise inventory and immediately paid 8,000 BD cash. Paid 300BD cash for shipping the merchandise purchased on Aug 3. Aug 3 Aug 7 Sold 7,000 BD worth of merchandise inventory to Relief Company on credit. The agreed selling price was 12,000 BD. Credit terms are 4/10, n/30, FOB shipping point. Relief Company paid 200 BD for the transportation fees to the shipment company (NOT Famous Company) Answer in the following format [Note: This is just an example and is not related to the question] Jan 1 Dr. Cash...................120 120
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.
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Question 2
Prepare the journal entry for the following transactions for Famous Company. Famous Company is a merchandising company that trades in elect
devices.
Aug 1
Purchased 8,000 BD of merchandise inventory and immediately paid 8,000 BD cash.
Paid 300BD cash for shipping the merchandise purchased on Aug 3.
Aug 3
Aug 7
Sold 7,000 BD worth of merchandise inventory to Relief Company on credit. The agreed selling price was 12,000 BD. Credit terms are
4/10, n/30, FOB shipping point. Relief Company paid 200 BD for the transportation fees to the shipment company (NOT Famous
Company).
Answer in the following format [Note: This is just an example and is not related to the question]
Jan 1
Dr. Cash...................120
Cr. Owner capital .............. 120
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