Create me a financial statement and check it correctly thank you. Cash 130,000 Owners capital 130,000 Machinery and Equipment 19,900 Cash 19,900 Furniture and fixtures 21,800 Cash 21,800 Contingency Funs (10%) 11,702 Cash 11,702 Rent expense 3,000 Cash 3,000 Marketing expense 100 Cash 100 Utilities expense 1,681.36 Cash 1,681.36 Cooking tools 1,215 Cash 1,215 Cleaning tools 520 Cash 520 Office supplies 260 Cash 260 Raw materials 12,390 Cash 12,390 Packaging 6,300 Cash 6,300 Salaries and wages 43,800 Cash 43,800 Employee benefits 6,056 Cash 6,056
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.
Create me a financial statement and check it correctly thank you.
Cash 130,000
Owners capital 130,000
Machinery and Equipment 19,900
Cash 19,900
Furniture and fixtures 21,800
Cash 21,800
Contingency Funs (10%) 11,702
Cash 11,702
Rent expense 3,000
Cash 3,000
Marketing expense 100
Cash 100
Utilities expense 1,681.36
Cash 1,681.36
Cooking tools 1,215
Cash 1,215
Cleaning tools 520
Cash 520
Office supplies 260
Cash 260
Raw materials 12,390
Cash 12,390
Packaging 6,300
Cash 6,300
Salaries and wages 43,800
Cash 43,800
Employee benefits 6,056
Cash 6,056
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