Can you do the Trial Balance and balance sheet, my Excel isn't auto filling for me and I'm lost The following events occurredin June: June 1: Owner contributed $50,000 in cash to the business. June 1: Owner purchased a company vehicle in the amount of $15,000. June 3:Owner took out a small business loan in the amount of $25,000. June 5:Owner paid rent for June, and prepaid office rent for a 6-month period to cover July through December at $1,195 per month. June 5:Owner paid business license fees in the amount of $250 to the county. June 5: Owner ordered office supplies, on account, in the amount of $750.00. June 6: Owner performed service for client on account in the amount of $1,000. June 9:Owner provided service for client in the amount of $1,500. Customer paid $750 at time of service. Client will be billed for the balance due. June 10:Owner paid $250 in advertising costs to the local paper. June 15: Owner recorded wages due to the part-time employee in the amount of $325. This will be paid on June 20. June 15:Owner prepaid business insurance to cover July through December at the rate of $125 per month. June 20:Owner paid wages due to part-time employee from period ending June 15. June 21: Owner paid for plumbing repairs in the office in the amount of $210. June 22: Owner withdrew $1,000 cash for personal use. June 23:Customer paid balance due from June 6 service in the amount of $1,000. June 25:Owner provided service to client in the amount of $800. Client paid at time of service. June 28: Owner paid balance due for office supplies purchase on June 5. June 29: Owner performed service for client on account in the amount of $2,225.00. June 30: Owner received telephone bill for month of June in the amount of $155 and recorded the expense. This bill will not be paid until July. June 30:Last day of pay period; owner owes part-time worker $325 for the June 16 through June 30 pay period. This will be paid on July 5. June 30: Record depreciation on vehicle at $250.
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.
Can you do the
The following events occurredin June:
June 1: Owner contributed $50,000 in cash to the business.
June 1: Owner purchased a company vehicle in the amount of $15,000.
June 3:Owner took out a small business loan in the amount of $25,000.
June 5:Owner paid rent for June, and prepaid office rent for a 6-month period to cover July through December at $1,195 per month.
June 5:Owner paid business license fees in the amount of $250 to the county.
June 5: Owner ordered office supplies, on account, in the amount of $750.00.
June 6: Owner performed service for client on account in the amount of $1,000.
June 9:Owner provided service for client in the amount of $1,500. Customer paid $750 at time of service. Client will be billed for the balance due.
June 10:Owner paid $250 in advertising costs to the local paper.
June 15: Owner recorded wages due to the part-time employee in the amount of $325. This will be paid on June 20.
June 15:Owner prepaid business insurance to cover July through December at the rate of $125 per month.
June 20:Owner paid wages due to part-time employee from period ending June 15.
June 21: Owner paid for plumbing repairs in the office in the amount of $210.
June 22: Owner withdrew $1,000 cash for personal use.
June 23:Customer paid balance due from June 6 service in the amount of $1,000.
June 25:Owner provided service to client in the amount of $800. Client paid at time of service.
June 28: Owner paid balance due for office supplies purchase on June 5.
June 29: Owner performed service for client on account in the amount of $2,225.00.
June 30: Owner received telephone bill for month of June in the amount of $155 and recorded the expense. This bill will not be paid until July.
June 30:Last day of pay period; owner owes part-time worker $325 for the June 16 through June 30 pay period. This will be paid on July 5.
June 30: Record
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 5 images
