Doug Allen has decided to go into the insect extermination business and to operate as Doug's Extermination Service. The following transactions were completed during the first month of operations, May, 20--. 1. Doug invested $35,000 cash in the business. 2. Purchased extermination equipment for $17,000 in cash. 3. Paid $700 rent for garage and office quarters. 4. Purchased chemicals (expense) for $1,100 from Low Glow Chem Co. on account. 5. Received $1,600 revenue for extermination service. 6. Paid telephone bill, $120 7. Paid assistant's salary, $700. 8. Earned $980 revenue for extermination service, on account. 9. Paid electric bill, $230. 10. Paid for truck repairs (expense), $145. 11. Paid $600 to Low Glow Chem Co., on account. 12. Paid $131 for gas and oil for truck (expense). 13. Received $1,400 revenue for extermination service. 14. Received $500 for services previously earned on account in transaction (8). 15. Paid assistant's salary, $900. Required: Enter the transactions in the T accounts, then enter the total of each column. If an account has entries on both sides, determine the balance and enter it on the side with the larger total. Cash fill in the blank 2 fill in the blank 4 fill in the blank 6 fill in the blank 8 fill in the blank 10 fill in the blank 12 fill in the blank 14 fill in the blank 16 fill in the blank 17 fill in the blank 19 fill in the blank 21 fill in the blank 23 fill in the blank 25 fill in the blank 27 fill in the blank 28 Bal. fill in the blank 29 Accounts Receivable fill in the blank 31 fill in the blank 33 Bal. fill in the blank 34 Extermination Equipment fill in the blank 36 Accounts Payable fill in the blank 38 fill in the blank 40 Bal. fill in the blank 41 D. Allen, Capital fill in the blank 43 Extermination Revenue fill in the blank 45 fill in the blank 47 fill in the blank 49 Bal. fill in the blank 50 Rent Expense fill in the blank 52 Wages Expense fill in the blank 54 fill in the blank 56 Bal. fill in the blank 57 Truck Expense fill in the blank 59 fill in the blank 61 Bal. fill in the blank 62 Electricity Expense fill in the blank 64 Telephone Expense fill in the blank 66 Chemical Expense fill in the blank 68
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.
-
Doug Allen has decided to go into the insect extermination business and to operate as Doug's Extermination Service. The following transactions were completed during the first month of operations, May, 20--.
1. Doug invested $35,000 cash in the business. 2. Purchased extermination equipment for $17,000 in cash. 3. Paid $700 rent for garage and office quarters. 4. Purchased chemicals (expense) for $1,100 from Low Glow Chem Co. on account. 5. Received $1,600 revenue for extermination service. 6. Paid telephone bill, $120 7. Paid assistant's salary, $700. 8. Earned $980 revenue for extermination service, on account. 9. Paid electric bill, $230. 10. Paid for truck repairs (expense), $145. 11. Paid $600 to Low Glow Chem Co., on account. 12. Paid $131 for gas and oil for truck (expense). 13. Received $1,400 revenue for extermination service. 14. Received $500 for services previously earned on account in transaction (8). 15. Paid assistant's salary, $900.
Required:
Enter the transactions in the T accounts, then enter the total of each column. If an account has entries on both sides, determine the balance and enter it on the side with the larger total.
Cash fill in the blank 2 fill in the blank 4 fill in the blank 6 fill in the blank 8 fill in the blank 10 fill in the blank 12 fill in the blank 14 fill in the blank 16 fill in the blank 17 fill in the blank 19 fill in the blank 21 fill in the blank 23 fill in the blank 25 fill in the blank 27 fill in the blank 28 Bal. fill in the blank 29
Accounts Receivable fill in the blank 31 fill in the blank 33 Bal. fill in the blank 34
Extermination Equipment fill in the blank 36
Accounts Payable fill in the blank 38 fill in the blank 40 Bal. fill in the blank 41
D. Allen, Capital fill in the blank 43
Extermination Revenue fill in the blank 45 fill in the blank 47 fill in the blank 49 Bal. fill in the blank 50
Rent Expense fill in the blank 52
Wages Expense fill in the blank 54 fill in the blank 56 Bal. fill in the blank 57
Truck Expense fill in the blank 59 fill in the blank 61 Bal. fill in the blank 62
Electricity Expense fill in the blank 64
Telephone Expense fill in the blank 66
Chemical Expense fill in the blank 68
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
