Financial Statements from the End-of-Period Spreadsheet Bamboo Consulting is a consulting firm owned and operated by Lisa Gooch. The following end-of-period spreadsheet was prepared for the year ended July 31, 2019: Bamboo Consulting End-of-Period Spreadsheet For the Year Ended July 31, 2019 Unadjusted Adjusted Trial Balance Adjustments Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 9,550 9,550 Accounts Receivable 22,740 22,740 Supplies 2,410 (a) 2,020 390 Office Equipment 18,650 18,650 Accumulated Depreciation 2,520 (b) 1,210 3,730 Accounts Payable 6,140 6,140 Salaries Payable (c) 300 300 Lisa Gooch, Capital 23,190 23,190 Lisa Gooch, Drawing 2,960 2,960 Fees Earned 43,340 43,340 Salary Expense 17,060 (c) 300 17,360 Supplies Expense (a) 2,020 2,020 Depreciation Expense (b) 1,210 1,210 Miscellaneous Expense 1,820 1,820 75,190 75,190 3,530 3,530 76,700 76,700 Based on the preceding spreadsheet, prepare an income statement for Bamboo Consulting. Bamboo Consulting Income Statement For the Year Ended July 31, 2019 $fill in the blank 328da7fcf046fb1_2 Expenses: $fill in the blank 328da7fcf046fb1_4 fill in the blank 328da7fcf046fb1_6 fill in the blank 328da7fcf046fb1_8 fill in the blank 328da7fcf046fb1_10 Total expenses fill in the blank 328da7fcf046fb1_11 $fill in the blank 328da7fcf046fb1_13 Based on the preceding spreadsheet, prepare a statement of owner's equity for Bamboo Consulting. Bamboo Consulting Statement of Owner's Equity For the Year Ended July 31, 2019 $fill in the blank 0e6414f90016f7f_2 $fill in the blank 0e6414f90016f7f_4 fill in the blank 0e6414f90016f7f_6 fill in the blank 0e6414f90016f7f_8 $fill in the blank 0e6414f90016f7f_10 Based on the preceding spreadsheet, prepare a balance sheet for Bamboo Consulting. Bamboo Consulting Balance Sheet July 31, 2019 Assets Current assets: $fill in the blank 522b7afdcfd104b_2 fill in the blank 522b7afdcfd104b_4 fill in the blank 522b7afdcfd104b_6 Total current assets $fill in the blank 522b7afdcfd104b_7 Property, plant, and equipment: $fill in the blank 522b7afdcfd104b_9 fill in the blank 522b7afdcfd104b_11 Total property, plant, and equipment fill in the blank 522b7afdcfd104b_12 Total assets $fill in the blank 522b7afdcfd104b_13 Liabilities Current liabilities: $fill in the blank 522b7afdcfd104b_15 fill in the blank 522b7afdcfd104b_17 Total liabilities $fill in the blank 522b7afdcfd104b_18 Owner's Equity fill in the blank 522b7afdcfd104b_20 Total liabilities and owner's equity $fill in the blank 522b7afdcfd104b_21
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 from the End-of-Period Spreadsheet
Bamboo Consulting is a consulting firm owned and operated by Lisa Gooch. The following end-of-period spreadsheet was prepared for the year ended July 31, 2019:
| Bamboo Consulting | ||||||||
| End-of-Period Spreadsheet | ||||||||
| For the Year Ended July 31, 2019 | ||||||||
| Unadjusted | Adjusted | |||||||
| Adjustments | Trial Balance | |||||||
| Account Title | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | ||
| Cash | 9,550 | 9,550 | ||||||
| 22,740 | 22,740 | |||||||
| Supplies | 2,410 | (a) | 2,020 | 390 | ||||
| Office Equipment | 18,650 | 18,650 | ||||||
| 2,520 | (b) | 1,210 | 3,730 | |||||
| Accounts Payable | 6,140 | 6,140 | ||||||
| Salaries Payable | (c) | 300 | 300 | |||||
| Lisa Gooch, Capital | 23,190 | 23,190 | ||||||
| Lisa Gooch, Drawing | 2,960 | 2,960 | ||||||
| Fees Earned | 43,340 | 43,340 | ||||||
| Salary Expense | 17,060 | (c) | 300 | 17,360 | ||||
| Supplies Expense | (a) | 2,020 | 2,020 | |||||
| Depreciation Expense | (b) | 1,210 | 1,210 | |||||
| Miscellaneous Expense | 1,820 | 1,820 | ||||||
| 75,190 | 75,190 | 3,530 | 3,530 | 76,700 | 76,700 |
Based on the preceding spreadsheet, prepare an income statement for Bamboo Consulting.
| Bamboo Consulting | ||
| Income Statement | ||
| For the Year Ended July 31, 2019 | ||
| $fill in the blank 328da7fcf046fb1_2 | ||
| Expenses: | ||
| $fill in the blank 328da7fcf046fb1_4 | ||
| fill in the blank 328da7fcf046fb1_6 | ||
| fill in the blank 328da7fcf046fb1_8 | ||
| fill in the blank 328da7fcf046fb1_10 | ||
| Total expenses | fill in the blank 328da7fcf046fb1_11 | |
| $fill in the blank 328da7fcf046fb1_13 |
Based on the preceding spreadsheet, prepare a statement of owner's equity for Bamboo Consulting.
| Bamboo Consulting | ||
| Statement of Owner's Equity | ||
| For the Year Ended July 31, 2019 | ||
| $fill in the blank 0e6414f90016f7f_2 | ||
| $fill in the blank 0e6414f90016f7f_4 | ||
| fill in the blank 0e6414f90016f7f_6 | ||
| fill in the blank 0e6414f90016f7f_8 | ||
| $fill in the blank 0e6414f90016f7f_10 |
Based on the preceding spreadsheet, prepare a
| Bamboo Consulting | ||
| Balance Sheet | ||
| July 31, 2019 | ||
| Assets | ||
| Current assets: | ||
| $fill in the blank 522b7afdcfd104b_2 | ||
| fill in the blank 522b7afdcfd104b_4 | ||
| fill in the blank 522b7afdcfd104b_6 | ||
| Total current assets | $fill in the blank 522b7afdcfd104b_7 | |
| Property, plant, and equipment: | ||
| $fill in the blank 522b7afdcfd104b_9 | ||
| fill in the blank 522b7afdcfd104b_11 | ||
| Total property, plant, and equipment | fill in the blank 522b7afdcfd104b_12 | |
| Total assets | $fill in the blank 522b7afdcfd104b_13 | |
| Liabilities | ||
| Current liabilities: | ||
| $fill in the blank 522b7afdcfd104b_15 | ||
| fill in the blank 522b7afdcfd104b_17 | ||
| Total liabilities | $fill in the blank 522b7afdcfd104b_18 | |
| Owner's Equity | ||
| fill in the blank 522b7afdcfd104b_20 | ||
| Total liabilities and owner's equity | $fill in the blank 522b7afdcfd104b_21 |
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