ash, Accounts receivable, supplies, Accounts payable, unearned service revenue, common stock, service revenue, salaries and wages expense, rent expense
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.
![Current Attempt in Progress
Blue Spruce Architects incorporated as licensed architects on April 1, 2022. During the first month of the operation of the business,
these events and transactions occurred:
Apr. 1
Stockholders invested $26,100 cash in exchange for common stock of the corporation.
1
Hired a secretary-receptionist at a salary of $544 per week, payable monthly.
Paid office rent for the month $1,305.
Purchased architectural supplies on account from Burmingham Company $1,885.
10
Completed blueprints on a carport and billed client $2,755 for services.
11
Received $1,015 cash advance from M. Jason to design a new home.
20
Received $4,060 cash for services completed and delivered to S. Melvin.
30
Paid secretary-receptionist for the month $2,176.
30
Paid $435 to Burmingham Company for accounts payable due.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5730274f-4461-492f-a82e-ac61275fc757%2F9357e68b-1386-4230-abb4-cc0ee5b65e58%2Fanqhjg8_processed.jpeg&w=3840&q=75)
![Post to the ledger T-accounts. (Post entries in the order of journal entries presented in the question.)
Cash
Accounts Receivable
Supplies
Accounts Payable](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5730274f-4461-492f-a82e-ac61275fc757%2F9357e68b-1386-4230-abb4-cc0ee5b65e58%2Fbkmxcw9_processed.jpeg&w=3840&q=75)
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In this question, we have given some transactions which we have to post in the ledger account.
A ledger account helps in knowing the debit or credit balance of a particular account.
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