cash account of the Jungkook Corporation as of December 31, 2021 consists of the following: n deposit in current account with BDO Bank ash collection not yet deposited to the bank - customer's check returned by the bank for insufficient fund check drawn by the Vice-President of the Corporation dated January 15, 2022 check drawn by a supplier dated December 28, 2021 for goods returned by the orporation check dated May 31, 2021 drawn by the Corporation against the BPI Bank in ayment of customs duties. Since the importation did not materialize, the check was eturned by the customs broker. This check was an outstanding check in the econciliation of the BPI Bank account P 900,000 350,000 150,000 70,000 60,000 410,000 etty Cash fund of which P10,000 is in currency; P7,200 in form of employees' I.O.U.; nd P2,800 is supported by approved petty cash vouchers for expenses all dated prior closing of the books on December 31, 2021 otal ess: Overdraft with BPI Bank secured by a Chattel mortgage on the inventories alance per ledger hat amount will the account “Cash" appear on the December 31, 2021 balance sheet? 20,000 P1,950,000 300,000 P1.660,000
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.
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