the commission. Purchased store supplies, P12,100 and issued Check no. 100499. Paid accounts with Consolation Marketing and availed of the discount. Check no. 100500 was issued for the balance. Purchased on account from Kleer Wholesalers, P78,000 of various canned goods, terms 5/10, n/20. 23 Paid Media Network for online and paper advertisements, P19,820 with Check no. 100501. Received Credit Memo from Kleer Wholesalers for P8,000 worth of merchandised returned as damaged. Collected P64,800 as sales for the day. Issued O.R. NO. 3709. 24 Service charges collected from customers, P6,300 in which P3,500 is commissions of riders. Issued check no. 100501 for the commission. Received Statement of Account No. 4387 from Petrol Services and check no. 100502 was issued for the payment of P6,230. 25 Sold merchandise on account to Pete's Diner, P13,100. Client picked up the goods at the store. Paid Kieso Motorcycle for repairs of motorcycle, P2,100. Check no. 100502 was issued as payment. Purchased for Cebu Traders merchandise costing P57,600 on account, terms 5/10, n/20. Freight of P3,640 was paid to LBC upon delivery. 27 Settled accounts with Kleer Wholesalers and issued Check no. 100504 for the payment. 29 Paid Salaries of staff, P18,000 and issued Check No. 100505. Collected cash sales of P72,100.Service charges collected from customers amounted to 6,800, in which P2,250 is commissions of riders. Check number 100506 was issued for the commissions. 30 Issued O.R. NO. 3710. Collected payments from Pete's Diner representing 1./2 of the total amount due. Issued O.R. NO. 3711. Paid Cebu Traders for account due and issued check number 100507. Cash sales for the day, P57,050. Issued O.R. NO. 3712. Services charges collected from customers totaled P5,128, in which P2,700 were commissions of riders. Check no. 100508 was issued for 31 the commission. Katrina Go withdraw P30,000 from the store. Issued Check no. 100508 Actual inventory at the end of the month is P163,500.00.
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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