DATE il ril 5 Timothy, Capital 6 Rent Expense 8 Truck 10 Supplies 12 Service Fees Earned 24 Repair Expense 25 Utilities Expense 25 26 Bank Loan Payable 27 Accounts Receivable owance for Doubtful Accounts DATE PPLIES DATE 28 Salary Expense 29 Account Payable 30 Timothy, Drawing ril PARTICULARS PPLIES EXPENSE DATE 10 Cash 12 Supplies Expense 20 Accounts Payable 23 Supplies Expense cumulated Depreciation-Equipment DATE 12 Supplies 23 Supplies General Ledger DEBIT 200,000 PARTICULARS cumulated Depreciation-Truck DATE ILITIES EXPENSE DATE ril 25 Cash PARTICULARS PARTICULARS PARTICULARS PARTICULARS PARTICULARS PR GJ-1 GJ-1 GJ-1 GJ-1 GJ-1 GJ-1 GJ-1 GJ-1 GJ-1 GJ-1 GJ-1 GJ-1 PR PR GJ-1 GJ-1 GJ-1 GJ-1 PR PR PR GJ-1 GJ-1 PR GJ-1 57,500 10,000 DEBIT DEBIT 11,315 15,000 DEBIT DEBIT DEBIT 8,250 3,500 DEBIT 1,750 CREDIT 8,000 80,000 11,315 4,500 1,750 20,000 5,000 5,000 3,500 CREDIT CREDIT 8,250 3,500 CREDIT CREDIT CREDIT CREDIT BALANCE 200,000 192,000 112,000 100,685 158,185 153,685 151,935 131,935 141,935 136,935 126,935 123,435 GL-12-A BALANCE GL-13 BALANCE 11,315 3,065 18,065 14,565 GL-17 BALANCE GL-19 BALANCE GL-55 BALANCE GL-59 8,250 11,750 BALANCE 1,750 Doubtful Account Expense DATE Insurance Expense DATE Depreciation Expenses DATE Interest Expense DATE PARTICULARS Salaries Payable DATE PARTICULARS Urilities Payable DATE PARTICULARS Accumulated Depreciation-Equipment DATE PARTICULARS Accumulated Depreciation-Truck DATE PARTICULARS PARTICULARS PARTICULARS PARTICULARS PR PR PR PR PR PR PR PR DEBIT DEBIT DEBIT DEBIT DEBIT DEBIT DEBIT DEBIT CREDIT CREDIT CREDIT CREDIT CREDIT CREDIT CREDIT CREDIT GL-60 BALA GL-61 BALA GL-62 BALA GL-63 BALA GL-17 BALA GL-19 BALA GL-23 BALA GL-24 BALA
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.



Trending now
This is a popular solution!
Step by step
Solved in 2 steps









