DIE F | G Beacons Company End-of-Period Spreadsheet For the Year Ended December 31, 20YS Unadjusted Trial Balance Cr. 21 Adjusted Trial Balance Dr. Adjustments Account Title Dr. Dr. Cr. 10.800 48.000 1,050 8 Cash 9Accounts Receivable 10 Prepaid Insurance 11 Supples 12 Land 13 Bulding 14 Accum Depr-Buldng 15 Equipment 16 Accum Depr-Equipment 17 Accounts Payable 18 Salaries & Wages Payabie 19 Unearned Rent 20 Common Stock 21 Retained Eamings 22 Dividends 23 Fees Earned 24 Rent Revenue 25 Salaries & Wages Expense 26 Advertising Expense 27 Utes Expense 28 Depr. Exp-Bulding 29 Repairs Expense 30 Depr. Exp-Eqvipment 31 Insurance Expense 32 Supplies Expense 33Msc. Expense 34 35 10.800 38.900 4200 2,730 98,000 400,000 9.100 3,150 2,180 550 98.000 400,000 205 300 12.000 217 300 101,000 101,000 89.900 15.700 5,000 1,000 75,000 128,100 4,800 85 100 15,700 5,000 2.100 75.000 128,100 1,100 10.000 10,000 363 700 9,100 1,100 372,800 1,100 158, 100 21,700 16,400 163, 100 21,700 16,400 12.000 8.850 4800 3.150 2,180 4.320 37.330 4900 5,000 12.000 8,850 4.800 3.150 2.180 4320 825.000 375.000 37.330
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.
Financial statements and closing entries
8. Net income $33,425
Beacons Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Beacons Company prepared the following end-of-period spreadsheet at December 31, 20Y5, the end of the fiscal year:
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Instructions
1. Prepare an income statement for the year ended December 31, 20Y5.
2. Prepare a statement of
3. Prepare a
4. Based upon the end-of-period spreadsheet, journalize the closing entries.
5. Prepare a post-closing
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