Elliptical Consulting is a consulting firm owned and operated by Jayson Neese. The following end-of-period spreadsheet was prepared for the year ended June 30, 20Y6: Elliptical Consulting End-of-Period Spreadsheet For the Year Ended June 30, 20Y6 Unadjusted Adjusted Trial Balance Adjustments Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 13,820 13,820 Accounts Receivable 32,910 32,910 Supplies 3,490 (a) 2,930 560 Office Equipment 26,990 26,990 Accumulated Depreciation 3,650 (b) 1,740 5,390 Accounts Payable 8,890 8,890 Salaries Payable (c) 430 430 Jayson Neese, Capital 33,570 33,570 Jayson Neese, Drawing 4,280 4,280 Fees Earned 62,360 62,360 Salary Expense 24,350 (c) 430 24,780 Supplies Expense (a) 2,930 2,930 Depreciation Expense (b) 1,740 1,740 Miscellaneous Expense 2,630 2,630 108,470 108,470 5,100 5,100 110,640 110,640 Question Content Area Based on the preceding spreadsheet, prepare an income statement for Elliptical Consulting. Elliptical ConsultingIncome StatementFor the Year Ended June 30, 20Y6 $Fees earned Expenses: $Salary expense Supplies expense Depreciation expense Miscellaneous expense Total expenses fill in the blank 9e2689ff9fd005c_11 $Net income Feedback Area Feedback Question Content Area Based on the preceding spreadsheet, prepare a statement of owner's equity for Elliptical Consulting. Elliptical ConsultingStatement of Owner's EquityFor the Year Ended June 30, 20Y6 $Jayson Neese, capital, July 1, 20Y5 $Net income Withdrawals Increase in owner's equity $Jayson Neese, capital, June 30, 20Y6 Feedback Area Feedback Question Content Area Based on the preceding spreadsheet, prepare a balance sheet for Elliptical Consulting. Elliptical ConsultingJune 30, 20Y6 Assets Current assets: $Cash Accounts receivable Supplies Total current assets $fill in the blank 879a32ff9fddfa2_7 Property, plant, and equipment: $Office equipment Less accumulated depreciation Total property, plant, and equipment fill in the blank 879a32ff9fddfa2_12 Total assets $fill in the blank 879a32ff9fddfa2_13 Liabilities Current liabilities: $Accounts payable Salaries payable Total liabilities $fill
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.
Elliptical Consulting is a consulting firm owned and operated by Jayson Neese. The following end-of-period spreadsheet was prepared for the year ended June 30, 20Y6:
| Elliptical Consulting | ||||||||
| End-of-Period Spreadsheet | ||||||||
| For the Year Ended June 30, 20Y6 | ||||||||
| Unadjusted | Adjusted | |||||||
| Adjustments | Trial Balance | |||||||
| Account Title | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | ||
| Cash | 13,820 | 13,820 | ||||||
| Accounts Receivable | 32,910 | 32,910 | ||||||
| Supplies | 3,490 | (a) 2,930 | 560 | |||||
| Office Equipment | 26,990 | 26,990 | ||||||
| 3,650 | (b) 1,740 | 5,390 | ||||||
| Accounts Payable | 8,890 | 8,890 | ||||||
| Salaries Payable | (c) 430 | 430 | ||||||
| Jayson Neese, Capital | 33,570 | 33,570 | ||||||
| Jayson Neese, Drawing | 4,280 | 4,280 | ||||||
| Fees Earned | 62,360 | 62,360 | ||||||
| Salary Expense | 24,350 | (c) 430 | 24,780 | |||||
| Supplies Expense | (a) 2,930 | 2,930 | ||||||
| Depreciation Expense | (b) 1,740 | 1,740 | ||||||
| Miscellaneous Expense | 2,630 | 2,630 | ||||||
| 108,470 | 108,470 | 5,100 | 5,100 | 110,640 | 110,640 |
Question Content Area
Based on the preceding spreadsheet, prepare an income statement for Elliptical Consulting.
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$Fees earned | |
| Expenses: | ||
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$Salary expense | |
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Supplies expense | |
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Depreciation expense | |
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Miscellaneous expense | |
| Total expenses | fill in the blank 9e2689ff9fd005c_11 | |
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$Net income |
Feedback Area
Question Content Area
Based on the preceding spreadsheet, prepare a statement of owner's equity for Elliptical Consulting.
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$Jayson Neese, capital, July 1, 20Y5 | |
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$Net income | |
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Withdrawals | |
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Increase in owner's equity | |
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$Jayson Neese, capital, June 30, 20Y6 |
Feedback Area
Question Content Area
Based on the preceding spreadsheet, prepare a balance sheet for Elliptical Consulting.
| Assets | ||
| Current assets: | ||
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$Cash | |
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Accounts receivable | |
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Supplies | |
| Total current assets | $fill in the blank 879a32ff9fddfa2_7 | |
| Property, plant, and equipment: | ||
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$Office equipment | |
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Less accumulated depreciation | |
| Total property, plant, and equipment | fill in the blank 879a32ff9fddfa2_12 | |
| Total assets | $fill in the blank 879a32ff9fddfa2_13 | |
| Liabilities | ||
| Current liabilities: | ||
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$Accounts payable | |
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Salaries payable | |
| Total liabilities | $fill in the blank 879a32ff9fddfa2_18 | |
| Owner's Equity | ||
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Jayson Neese, capital | |
| Total liabilities and owner's equity | $fill in the blank 879a32ff9fddfa2_21 |
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