Sales Transactions J. K. Bijan owns a retail business and made the following sales on account during the month of August 20--. There is a 6% sales tax on all sales. Aug. 1 Sale No. 213 to Jung Manufacturing Co., $1,310 plus sales tax. 3 Sale No. 214 to Hassad Co., $3,740 plus sales tax. * Sale No. 215 to Helsinki, Inc., $1,250 plus sales tax. (Open a new account for this customer. Address is 125 Fishers Dr., Noblesville, IN 47870-8867.) 11 Sale No. 216 to Ardis Myler, $1,150 plus sales tax. 18 Sale No. 217 to Hassad Co., $4,150 plus sales tax. 22 Sale No. 218 to Jung Manufacturing Co., $1,980 plus sales tax. 30 Sale No. 219 to Ardis Myler, $1,560 plus sales tax. Required: 1. Record the transactions starting on page 15 of a general journal. Enter the posting references when you complete part 2. GENERAL JOURNAL PAGE 15 DESCRIPTION DEBIT DATE POST. REF. CREDIT 20-- Accounts Receivable/Jung Manufacturing Co. * Sales - Sales Tax Payable Aug. 1 1,310 1,236 74 Sale No. 213 Aug. 3 Accounts Receivable/Hassad Co. 3,740 Sales 3,528 Sales Tax Payable 212 Sale No. 214 Aug. 7 Accounts Receivable/Helsinki, Inc, Sales - Sales Tax Payable 1,250 1,179 71 Sale No. 215 Aug. 11 Accounts Receivable/Ardis Mvler 1,150 Sales 1,085 ACCOUNTS RECEIVABLE LEDGER NAME Hassad Co. 1225 W. Temperance Street, Elletsville, IN 47429-9976 ADDRESS DATE ITEM POST. REF. DEBIT CREDIT BALANCE 20-- NAME Helsinki, Inc. ADDRESS 125 Fishers Drive, Noblesville, IN 47870-8867 DATE ITEM POST. REF. DEBIT CREDIT BALANCE 20-- NAME Jung Manufacturing Co. ADDRESS 8825 Old State Road, Bloomington, IN 47401-8823 DATE ITEM POST. REF. DEBIT CREDIT BALANCE 20-- NAME Ardis Myler 2100 Greer Lane, Bedford, IN 47421-8876 ADDRESS DATE ITEM POST. REF. DEBIT CREDIT BALANCE 20--
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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