Account mber Name 1110 Cash 1120 Accounts Receivable 1130 Prepaid Insurance 1140 Prepaid Rent 1150 Office Supplies 1211 Office Equip. 1212 Accum. Depr.-Office Equip 1311 Computer Equip. 1312 Accum. Depr.-Computer Equip. 1411 Building Cost 1412 Accum. Depr.-Building 1510 Land 2101 Accounts Payable 2102 Advanced Payments 2103 Interest Payable 2105 Salaries Payable 2201 Mortgage Payable 2202 Notes Payable 3100 Hudson Bloom, Capital 3300 Hudson Bloom, Withdrawals 4100 Computer & Consulting Revenue 5010 Rent Expense 5020 Salary Expense 5030 Advertising Expense F040 Respiro & Moint Exp Unadjusted Trial Balance Debit Credit 74,821.00 1,115.00 5,304.00 6,600.00 655.00 1,883.00 0.00 210,890.00 0.00 125,000.00 0.00 24.000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,900.00 0.00 0.00 1,720.00 475.00 1.395.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.595.00 0.00 0.00 0.00 134,100.00 100.250.00 203,823.00 0.00 16,800.00 0.00 0.00 0.00 000 Worksheet For Period Ending June 30, 2023 Adjusting Entries Debit 0.00 8,750.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,200.00 516.00 0.00 000 Credit 0.00 0.00 2,421.00 0.00 385.00 0.00 27.00 0.00 3,052.00 0.00 247.00 0.00 0.00 0.00 433.03 1,515.00 0.00 0.00 0.00 0.00 8,750.00 0.00 0.00 0.00 000 Adjusted Trial Balance Debit Credit 74,821.00 9,865.00 2,883.00 6.600.00 270.00 1,883.00 210,890.00 125,000.00 24,000.00 - - - 1.900.00 2.200.00 2,236.00 475.00 1.095.00 - 27.00 3,052.00 247.00 1,595.00 433.03 1,515.00 134,100.00 100,250.00 203,823.00 25,550.00 Income Statement Debit 2,200.00 2,236.00 475.00 1.365.00 Credit 25,550.00 Balance Sheet Credit Debit 74,821.00 9,865.00 2,883.00 6,600.00 270.00 1,883.00 210,890.00 125,000.00 24,000.00 1,900.00 27.00 3,052.00 247.00 1,595.00 433.03 1,515.00 134,100.00 100,250.00 203,823.00
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.
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