ABC Company Adjusted Trial Balance 31 December, 2017 Account Name Cash Accounts Recievable office Suppliers office equipments Ref Debit Credit 400,000.00 30,000.00 45,000.00 15,000.00 Vehicle 40,000.00 300,000.0O Duilding Accounts Payable Noted Payable Common Stock Retained Earnings Sales Revenues Cost of goods sold Salaries expenses Rent expenses 100,000.00 50,000.00 500,000.00 20,000.00 700,000.0O Supplies expenses Advertising Insurance Total 400,000.00 50,000.00 20,000.00 10,000.00 30,000.00 30,000.00 $1.370,000.00 $1,370,000.00
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.
Preparation of;
Income Statement.
Statement of
![ABC Company
Adjusted Trial Balance
31 December, 2017
Account Name
Cash
Accounts Recievable
office Suppliers
office equipments
Ref
Debit
Credit
400,000.0o
30,000.00
45,000.00
15,000.00
40,000.00
Vehicle
Duilding
Accounts Payable
Noted Payable
Common Stock
300,000.0o
100,000.00
50,000.00
$4
500,000.0o
Retained Earnings
20,000.0O
Sales Revenues
Cost of goods sold
Salaries expenses
700,000.0o
400,000.0o
50,000.00
Rent expenses
20,000.00
Supplies expenses
Advertising
Insurance
Total
10,000.00
30,000.00
30,000.00
$ 1,370,000.00
$ 1,370.000.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8a94e261-4d5b-4ade-83c5-15646c5ae506%2Fea3dcc4d-ff84-4ae1-a401-5e36f5afc166%2F8tfl14j_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 6 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)