A B C D E Lamp Light Company End-of-Period Spreadsheet For the Year Ended December 31, 2018 Unadjusted Adjusted Trial Balance Adjustments Dr. Trial Balance 6 Account Title Dr. Cr. Cr. Dr. Cr. 7 В Cash 9 Accounts Receivable 10 Prepaid Insurance 11 Supplies 12 Land 13 Building 14 Accum. Depr.-Building 15 Equipment 16 Асcum. Depr.-Еquipment 17 Accounts Payable 18 Salaries & Wages Payable 19 Unearned Rent 20 Common Stock 21 Retained Earnings 22 Dividends 23 Fees Earned 24 Rent Revenue 25 Salaries & Wages Expense 26 Advertising Expense 27 Utilities Expense 28 Depr. Exp.-Building 29 Repairs Expense 30 Depr. Exp.-Equipment 31 Insurance Expense 32 Supplies Expense 33 Misc. Expense 10,800 38,900 4,200 2,730 98,000 400,000 10,800 50,200 1,200 11,300 3,000 2,250 480 98,000 400,000 205,300 10, 100 215,400 101,000 101,000 85, 100 6,680 91,780 15,700 4,900 15,700 4,900 2,100 75,000 128, 100 1,300 800 75,000 128,100 10,000 10,000 11,300 1,300 363,700 375,000 1,300 4,900 163,100 21,700 11,400 168,000 21,700 11,400 10,100 8,850 6,680 10,100 8,850 6,680 3,000 3,000 2,250 2,250 4,320 875.000 875.000 4,320 39.530 907,980 907,980 34 39,530 35 1234
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Lamp Light Company maintains and repairs warning lights, such as those found on radio towers
and lighthouses. Lamp Light prepared the following end-of-period spreadsheet at December 31,
2018, the end of the fiscal year:
Instructions
1. Prepare an income statement for the year ended December 31.
2. Prepare a
3. Prepare a
4. Based upon the end-of-period spreadsheet, journalize the closing entries.
5. Prepare a post-closing
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