Assets Current Assets Cash Accounts Receivable Merchandise Inventory Supplies Total Current Assets Property, Plant, and Equipment Cars Less: Accumulated Depreciation-Carso Cars - Net Equipment Less: Accumulated Depreciation - Equipment Equipment-Net Furniture & Fixtures Less: Accumulated Depreciation - Furniture & Fixtures Furniture & Fixtures - Net Total Property, Plant, and Equipment Total Assets Liabilities Current Liabilities Accounts Payable Rent Payable Utilities Payable. Total Current Liabilities. Long Term Liability Loans Payable Total Liabilities Hap, Equity Total Liabilities and Equity FABM2-2022-23 Page 1 ot2 (Ret Ed. 21 Century Accounting Process ZVC-M) Net Sales Less: Cost of Goods Sold Gross Income Happy Feet Emporium Comparative Statements of Financial Position December 31, 2021 and December 31, 2022 Less: Operating Expenses Rent Expense Salary Expense Gas & Oil Expense Depreciation Expense Utilities Expense Repair Expense Supoline Exponca 2022 P 652,250 P 227,500 424,750 108,750 90,000 46,520 34,000 19,000 11,500 4220 P 2021 P 2022 85.000 P 25,000 70,750 4,500 185,250 Happy Feet Emporium Comparative Income Statements December 31, 2021 and December 31, 2022 564,200 188,600 375,600 250,000 60,000 190,000 45,000 3,500 41.500 94,500 76,000 35,500 32,500 15,500 10,000 7.500 25,000 3,000 22,000 253,500 272,500 5 P 438,750 P 414,700 282.250 P 438,750 P 125,000 153,500 2021 67,500 P 17,500 13,000 12,000 60,000 10,750 1,700 2,800 142,200 250,000 30,000 220,000 30,000 1,000 11,000 P 15,000 10,000 7,500 28,500 29,000 25,000 1,500 23,500 5,500 20,500 150,000 170,500 Increase (Decrease) 244,200 414,700 30,000 15,000 2,500 1,500 (4,000) 10,000 2,000 (25,000) 41,050
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.
Prepare the direct and indirect method statement of
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