A. E Last Chance Company End-of-Period Spreadsheet For the Year Ended June 30, 20Y3 Unadjus ted Trial Balance Dr. 3 4 Adjusted Adjustments Trial Balance 6 Account Title Cr. Dr. C. Dr. Cr. 8 Cash 9 Accounts Receivable 10 Prepaid Insurance 11 Supplies 12 Land 13 Building 14 Accum. Depr.–Building 15 Equipment 16 Accum. Depr.-Equipment 17 Accounts Payable 18 Salaries & Wages Payable 19 Uneamed 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 Travel Expense 29 Depr. Exp.–Equipment 30 Depr. Exp.–Building 31 Supplies Expense 32 Insurance Expense 33 Misc. Expensе 5,100 22,750 3,600 2,025 80,000 340,000 5,100 26,500 2,300 3,750 1,300 1,500 525 80,000 340,000 3,000 140,000 4,550 190,000 193,000 140,000 54,450| 9,750 59,000 9,750 1,900 1,500 90,000 271,300 1,900 4,500 90,000 271,300 3,000 20,000 20,000 280,000 3,750 3,000 283,750 3,000 147,000 86,800 30,000 18,750 4,550 3,000 1,500 1,300 5,875 19,000 913,200 913,200 145,100 86,800 30,000 18,750 1,900 4,550 3,000 1,500 1,300 5,875 900,000 900,000 34 19,000
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.
Financial statements and closing entries Last Chance Company offers legal consulting advice to prison inmates. Last Chance prepared the end-of-period spreadsheet that follows at June 30, 20Y3, the end of the fiscal year.
Instructions
1. Prepare an income statement for the year ended June 30, 20Y3.
2. Prepare a statement of
3. Prepare a
4. On the basis of the end-of-period spreadsheet, journalize the closing entries.
5. Prepare a post-closing
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