I just started an accounting class, and I was doing some work for it. My professor has fallen ill and I haven't been able to get in contact with him. It would be a great help. Did I do my trial balance correct? Here's a picture of my work:
Freedom has always been the only route to progress.
Somewhat, for the journal entries you put what account it is debited/credited to inline, then in ( ) underneath put the discriptions. For the trial balance, you put the end balance in the individual T-accounts, assuming access- if not, then you create a t-account and sum that- example is the cash account:
Cash
Total = 23960
Then in your trial balance, you put only the 23960 Debit in cash and 0 in the credit side of the balance- otherwise it will not be correct, it may balance, but it won't be right.
See- a minoring in Business Admin does help an ME major.
Edit: Thats why you don't balance as well- and you pull those numbers directly into your financial statements- the income, owner's equity and balance sheet use that, it makes it easier unless you make a worksheet (typically in Excel or a specially made accounting one)
So I just have to make sure I add zeros? I also have to "Post to the Ledger T accounts", I don't know if I have done this or not.
Thanks a lot!
Kinda... its that between the journal and the trial, you must do the t-accounts, and sum them- that total, credit or debit, goes into the trial, that way it balances.
Do what was said about the T accounts, and you will find that some of your numbers are wrong.
For instance, accounts payable should only be 550 because you paid 600 on the 30th.
Also, service revenue should be 6600, you forgot to count the 1700 in revenue from the 10th.
I'll have to look into what that means (Post to the Ledger T accounts), I don't. I'll look around my textbook tommorow and post an update if I haven't figured it out.
Is there any certain order to post the ledger?
All posts, journal, t-accounts, etc. when there are dates involved are in chronological order, and when applicable, debits then credits.
Okay this is what it looks like now, I have to submit it today, quick feed back would be awesome:
The only thing I see is Sept. 30th, the entry for paying $600 to the supply company- unless you are buying more supplies, you are paying $600 off of your balance with the company, not buying $600 more- like paying off a credit card. That effects your payables, and cash- so your payables is too high, and supplies are too high. So your in balance, but $600 too high.
Also, I think receivables is spelled "c e i v", not "c i e v".
Your right! On the 30th, I'm paying off 600 dollars of the accounts payable. Okay, so what should I change it to then, if I'm paying off the accounts payable? I mean what should I change the debit from supplies to what? Accounts payable?
The JE should be
Accounts Payable 600
Cash 600
"Payment to T***-company"
Cheers
Remember you created the payable on the 3rd, now your paying it off (you created it with a credit and now, to pay it off, you must debit and credit cash).
Like this?:
Yep think so. I only checked one of your calculations but everything seems alright. And the last entry is correct. Nice work (study accounting--its like learning the physics of business).
Thanks a lot for the help. Accounting is the only class I feel like I'm putting any effort into, or the only class which is challenging me. It's very tedious.
Libertyandlife: Thanks a lot for the help. Accounting is the only class I feel like I'm putting any effort into, or the only class which is challenging me. It's very tedious.
Young man, you seem to know not what an actuary is
(but yes, accounting is very tedious, especially with all the IFRS stuff coming out; get away while you can!)
Now that I understand it more, I'm actually starting to like accounting. Go figure.
Well, I know to me this stuff seems easy, but perpetually inventory is annoying to journalize, but thats as far as my class has gotten.
@mwlesh We had a test on that stuff, I did well, but I still don't understand that stuff that well.
Anyway, it's that time again! This one is a really quick and easy one. I just want someone to look over it, but don't know anyone in accounting.
My gratitude for my fellow miseseans here is beyond words. Really.
Homework asks us:
"The adjusted trial balance of some company shows these data pertaining to sales at the end of its fiscal year, October 31, 2010: Sales 900,000; Freight-out $12,000; Sales Returns Allowances $18,000; and Sales Discounts $13,500. Prepare the sales revenues section of the income statement."
This is what I put:
Thats appears correct- it is less the sum of those 3, and the math checks. You're getting better at this, and I am taking Intro To Managerial Econ and Management Pronciples this fall, so I can help in those as well.
Thanks, I hope so, I've gotten an A in the class so far !