Additional data related to the first quarter of 2016for HaneyCompany: (Click the icon to view the data.) Read the requirements. Requirement 1. Prepare Haney Company's schedule of cash receipts from customers and sched Begin by preparing the schedule of cash receipts from customers for the first quarter of 2016. Cash Receipts from Customers Total sales Cash Receipts from Customers: Accounts Receivable balance, December 31, 2015 1st Qtr.-Sales Total cash receipts from customers First Quarter 2016 Total sales 210,000 Budgeted purchases of direct materials Budgeted direct labor cost 40,600 36,900 Budgeted manufacturing overhead costs: Variable manufacturing overhead 1,225 Depreciation 1,400 Insurance and property taxes 6,850 Budgeted selling and administrative expenses: Salaries expense 7,000 Rent expense 1,800 Insurance expense Depreciation expense Supplies expense 1,400 500 10,500 More info - - X Accounts Receivable balance, March 31, 2016: 1st Qtr.-Sales, collected in 2nd Qtr. example Get more help a. Capital expenditures include $40,000 for new manufacturing equipment to be purchased and paid in the first quarter. b. Cash receipts are 75% of sales in the quarter of the sale and 25% in the quarter following the sale. c. Direct materials purchases are paid 70% in the quarter purchased and 30% in the next quarter. d. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. e. Income tax expense for the first quarter is projected at $48,000 and is paid in the quarter incurred. f. Haney Company expects to have adequate cash funds and does not anticipate borrowing in the first quarter. g. The December 31, 2015, balance in Cash is $35,000, in Accounts Receivable is $25,400, and in Accounts Payable is $12,500.
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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