Owner, invested $121,750 cash in the company in exchange for common stock. January 2 The company purchased supplies for $1,950 cash. January 3 The company purchased $16,050 of equipment on credit. January 4 The company received $16,900 cash for services provided to a customer. January 5 The company paid $16, 050 cash to settle the payable for the equipment purchased on January 3. January 6 The company billed a customer $3,400 for services provided. January 7 The company paid $1,925 cash for the monthly rent. January 8 The company collected $1,650 cash as partial payment for the account receivable created on January 6. January 9 The company paid $10,700 cash in dividends to the owner (sole shareholder). Requirement General Journal General Ledger Transaction: Trial Balance Net Income Income statement Where can you go to find each of your answers? January 1-J. Wilson, owner, invested $121,750 cash in the company in exchange for common stock. $ January 2- The company purchased supplies for $1,950 cash. January 3- The company purchased $16,050 of equipment on credit. The financial statements report the cumulative impact of all transactions recorded as of the financial statement date. Input the cumulative amount of a) Net Income (Los), b) Total Assets, c) Total Liabilities, and d) Total Equity that would be reported on the financial statements immediately after each transaction is recorded. (Hint: You can check your work by selecting the date on the trial balance tab.) The first 2 transactions are completed for you! January 4- The company received $16,900 cash for services provided to a customer. January 5-The company paid $16,050 cash to settle the payable for the equipment purchased on January 3. January 6- The company billed a customer $3,400 for services provided. Income Statement Jan. 7- The company paid $1,925 cash for the monthly rent. January 8-The company collected $1,650 cash as for them 0 0 St Retained Earnings Total Assets Balance sheet $ Balance Sheet 121,750 Total Liabilities Balance sheet 121,750 $ FS Impact 0 Total Equity Balance sheet 0 $ 121,750 121,750 Show less A
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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