answer within the format by providing formula the detailed working Please provide answer in text (Without image) Please provide answer in text (Without image) Please provide answer in text (Without image) Scenario: Dalton McDonald owns and operates D Mac Trucking Ltd but has no accounting personal to prepare his financial information and has approached your group for assistance. The company’s financial year end is December 31 each year. They have provided the following information and transactions for 2022: Jan 1. Balances from 2021 – Cash $400,000; Accounts Receivable $250,000; Supplies $205,000; Furniture and Equipment $600,000; Other Creditors $218,000; and Capital $1,237,000. Jan 2. The following assets were received from Dalton McDonald in exchange for capital in the company: cash - $200,000, accounts receivable - $61,000, supplies - $90,000, and furniture- $400,000. Feb 1. Paid fifteen (15) months’ rent on a lease rental contract, $450,000. Mar 30. Paid the premiums on the property and peril insurance policies for thirteen (13) months, $100,000. April 4. Received cash from clients as an advance payment for services to be provided in the coming months, $350,000. May 5. Purchased additional equipment on account from Magic Trucking, $120,000. June 6. Received cash from clients on account, $150,000. June 10. Paid cash for rental of equipment, $75,000. Aug 12. Paid Magic Trucking a portion of the debt incurred on May 5, $90,000. Sept 12. Recorded services provided on account for the period July 1 – Sept 12, $400,000. Sept 30. Paid part-time workers salary, $195,000. Oct 17. Recorded cash from cash clients for fees earned during the first half of year, $390,000. Oct 30. Paid cash for supplies, $40,000. Oct 30. Recorded services provided on account for the period June to July, $190,000. Nov 24. Recorded cash from cash clients for fees earned for the period September 13- Nov 24, $310,000. Nov 25. Received cash from clients on account, $250,000. Nov 27. Paid part-time workers for salary $195,000. Dec 29. Paid telephone bill for the year 2022 $140,000. Dec 30. Paid electricity bill for the year 2022 $310,000. Dec 30. Recorded cash from cash clients for fees earned for the period September 14- Dec 30, $210,000. Dec 30. Recorded services provided on account for October to December 2022, $150,000. Requirement: Prepare the opening journal entries and journalize each transaction in the general journal referring to the following chart of accounts in selecting the accounts to be debited and credited and include a narration for each transaction: Account # Account Name 11 Cash 12 Accounts Receivables 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Furniture and Equipment 21 Other Creditors 22 Salaries Payable 23 Unearned Fees 31 Capital Stock 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Insurance Expense 55 Utilities Expense 56 Equipment Rental Expense 57 Income Summary
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.
please answer within the format by providing formula the detailed working
Please provide answer in text (Without image)
Please provide answer in text (Without image)
Please provide answer in text (Without image)
Scenario:
Dalton McDonald owns and operates D Mac Trucking Ltd but has no accounting personal to prepare his financial information and has approached your group for assistance. The company’s financial year end is December 31 each year. They have provided the following information and transactions for 2022:
Jan 1. Balances from 2021 – Cash $400,000;
Jan 2. The following assets were received from Dalton McDonald in exchange for capital in the company: cash - $200,000, accounts receivable - $61,000, supplies - $90,000, and furniture- $400,000.
Feb 1. Paid fifteen (15) months’ rent on a lease rental contract, $450,000.
Mar 30. Paid the premiums on the property and peril insurance policies for thirteen (13) months, $100,000.
April 4. Received cash from clients as an advance payment for services to be provided in the coming months, $350,000.
May 5. Purchased additional equipment on account from Magic Trucking, $120,000.
June 6. Received cash from clients on account, $150,000.
June 10. Paid cash for rental of equipment, $75,000.
Aug 12. Paid Magic Trucking a portion of the debt incurred on May 5, $90,000.
Sept 12. Recorded services provided on account for the period July 1 – Sept 12, $400,000.
Sept 30. Paid part-time workers salary, $195,000.
Oct 17. Recorded cash from cash clients for fees earned during the first half of year, $390,000.
Oct 30. Paid cash for supplies, $40,000.
Oct 30. Recorded services provided on account for the period June to July, $190,000.
Nov 24. Recorded cash from cash clients for fees earned for the period September 13- Nov 24, $310,000.
Nov 25. Received cash from clients on account, $250,000.
Nov 27. Paid part-time workers for salary $195,000.
Dec 29. Paid telephone bill for the year 2022 $140,000.
Dec 30. Paid electricity bill for the year 2022 $310,000.
Dec 30. Recorded cash from cash clients for fees earned for the period September 14- Dec 30, $210,000.
Dec 30. Recorded services provided on account for October to December 2022, $150,000.
Requirement:
- Prepare the opening
journal entries and journalize each transaction in the general journal referring to the following chart of accounts in selecting the accounts to be debited and credited and include a narration for each transaction:
| Account # | Account Name |
| 11 | Cash |
| 12 | Accounts Receivables |
| 14 | Supplies |
| 15 | Prepaid Rent |
| 16 | Prepaid Insurance |
| 18 | Furniture and Equipment |
| 21 | Other Creditors |
| 22 | Salaries Payable |
| 23 | Unearned Fees |
| 31 | Capital Stock |
| 41 | Fees Earned |
| 51 | Salary Expense |
| 52 | Rent Expense |
| 53 | Supplies Expense |
| 54 | Insurance Expense |
| 55 | Utilities Expense |
| 56 | Equipment Rental Expense |
| 57 | Income Summary |
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