A hotel’s daily cashiers report shows the following: Room sales $ 125,000 Sales tax on rooms 10,000 Food sales 30,000 Sales tax on food 2,000 Beverage sales 5,000 Sales tax on beverages 50 What are room sales, food sales, and beverage sales?
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.
- A hotel’s daily cashiers report shows the following:
Room sales $ 125,000
Sales tax on rooms 10,000
Food sales 30,000
Sales tax on food 2,000
Beverage sales 5,000
Sales tax on beverages 50
What are room sales, food sales, and beverage sales?
- A hotel offers a couples weekend package plan for $500. This plan includes accommodations for two nights, two breakfasts, two dinners, a welcome bottle of champagne, and a drink with each dinner. The market value of these items is $400 rooms, $150 food, $75 beverages. Allocate the revenue to the proper departments for each plan sold.
- A motel has the following annual information (Net indicates revenue after allowances):
Rooms revenue (net) $ 926,000
Food revenue (net) 295,342
Beverage revenue (net) 125,222
Cost of food sales 119,683
Paid rooms occupied 16,831
Rooms available (80 daily) 29,200 (80 x 365)
Food covers 38,129
Compute the following ratios:
Average room rate
Occupancy percentage
Average food check
Food cost percentage
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