Chapter 5 Part 2 i The following account information, in alphabetical order, was taken from the worksheet of Compu-Soft for The month ended november 30, 2023. \table[[,Account, \table[[Adjusted Trial], [Balance]]], [201,,Credit], [106, \table[[Accounts payable], [Accounts receivable]],.,780],[166, Accumulated depreciation, sto,core equipment, $1,230,4,900],[101,Cash,,2,250,],[502,Cost of goods sold,,15,100,],[612, Depreciation expense, store,equipment, 120,],[301, Peter Delta, capital,,,2,715],[302, Peter Delta, withdrawals,,4,900,],[406 ,Rent revenue,,,2,800],[413, Sales,,, 29,700], [415,Sales discounts,,45,], [414,Sales returns and allowances,,750,], [165,Store equipment,, \table[[1,500],[2,400]]],[690,\table[[Utilities expense], [Wages expense]],, \table[[2,40 0],[6,600]]],[623,\table [[Wages expense], [Totals]],,$40,895,$40,895 - Chapter 5 Part 2 i education.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https% 253A%252F%252Flms.mheducation.co 201 Accounts payable 106 Accounts receivable. 166 101 502 612 301 302 The following account information, in alphabetical order, was taken from the worksheet of Compu-Soft for th 30, 2023. Account Accumulated depreciation, store equipment Cash Cost of goods sold Depreciation expense, store equipment Peter Delta, capital Peter Delta, withdrawals 406 Rent revenue 3 413 Sales 415 Sales discounts 414 Sales returns and allowances 165 Store equipment 690 Utilities expense 623 Wages expense Totals c COMPU-SOFT Income Statement For Month Ended November 30, 2023 Adjusted Trial Balance Saved Debit Credit $ 780 $1,230 2,250 15,100 120 4,900 4,900 Prev 2,715 2,800 29,700 45 750 7,500 2,400 6,600 $40,895 $40,895 Required: Prepare a multiple-step income statement for the month ended November 30, 2023. 1 of 4 Next >
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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