(b) - Your answer is partially correct. Prepare the current assets section of the balance sheet for Sandhill Company. Assume that in addition to the receivables it has cash of $95,700, inventory of $132,200, and prepaid insurance of $9,000. (List Current Assets in order of liquidity.) I Love v ✓ Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities. Property, Plant and Equipment Owner's Equity Total Assets Total Current Assets Total Total Current Liabilities racer cantan Total Intangible Assets Total Liabilities Total Clad 18 Total Liabilities and Owner's Equity Total Cldbint Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Owner's Equity SANDHILL COMPANY Balance Sheet (Partial) 0000 MacBook Pro A
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.
JOURNAL ENTRIES
Journal Entry is the First stage of Accounting Process. Journal Entry is the Process of Recording all Financial & Non Financial Transaction in a Proper Format.
Journal entries help to Keep the Records of All Transactions.
Golden Rule of Journal Entry :—
-
- Debit the Receiver, Credit the Giver.
- Debit what Comes in, Credit what Goes Out.
- Debit all Expenses & Losses, Credit all Income & Gains.
CURRENT ASSETS
Current Assets are those Assets which is held for trading, intend to sell or consume in normal operating cycle, realise within 12 Months & Classified as Cash & Cash Equivalents.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
