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, 20Y5: Bamboo Consulting End-of-Period Spreadsheet For the Year Ended July 31, 20Y5 Unadjusted Adjusted Trial Balance Adjustments Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 10,080 10,080 Accounts Receivable 24,000 24,000 Supplies 2,540 (a) 2,140 400 Office Equipment 19,200 19,200 Accumulated Depreciation 2,660 (b) 1,270 3,930 Accounts Payable 6,480 6,480 Salaries Payable (c) 310 310 Lisa Gooch, Capital 24,480 24,480 Lisa Gooch, Drawing 3,120 3,120 Fees Earned 44,760 44,760 Salary Expense 17,520 (c) 310 17,830 Supplies Expense (a) 2,140 2,140 Depreciation Expense (b) 1,270 1,270 Miscellaneous Expense 1,920 1,920 78,380 78,380 3,720 3,720 79,960 79,960 Question Content Area Based on the preceding spreadsheet, prepare an income statement for Bamboo Consulting. Bamboo ConsultingIncome StatementFor the Year Ended July 31, 20Y5 $Fees earned Expenses: $Salary expense Supplies expense Depreciation expense Miscellaneous expense Total expenses fill in the blank 461ad1f62fa8020_11 $Net income Feedback Area Feedback Revenue and expense accounts flow into the income statement. Recall that revenues include fees earned for goods and services. Question Content Area Based on the preceding spreadsheet, prepare a statement of owner's equity for Bamboo Consulting. Bamboo ConsultingStatement of Owner's EquityFor the Year Ended July 31, 20Y5 $Lisa Gooch, capital, August 1, 20Y4 $Net income Withdrawals Increase in owner's equity $Lisa Gooch, capital, July 31, 20Y5 Feedback Area Feedback The first item normally on the statement of owner's equity is the beginning balance of the owner's capital account. This balance will be changed positively by any owner investments and net income, and negatively by any net losses and withdrawals. Question Content Area Based on the preceding spreadsheet, prepare a balance sheet for Bamboo Consulting. Bamboo ConsultingJuly 31, 20Y5 Assets Current assets: $Cash Accounts receivable Supplies Total current assets $fill in the blank b4017bf7dfc0fe1_7 Property, plant, and equipment: $Office equipment Less accumulated depreciation Total property, plant, and equipment fill in the blank b4017bf7dfc0fe1_12 Total assets $fill in the blank b4017bf7dfc0fe1_13 Liabilities Current liabilities: $Accounts payable Salaries payable Total liabilities $fill in the blank b4017bf7dfc0fe1_18 Owner's Equity Lisa Gooch, capital Total liabilities and owner's equity $fill in the blank b4017bf7dfc0fe1_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, 20Y5:
| Bamboo Consulting | ||||||||
| End-of-Period Spreadsheet | ||||||||
| For the Year Ended July 31, 20Y5 | ||||||||
| Unadjusted | Adjusted | |||||||
| Adjustments | Trial Balance | |||||||
| Account Title | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | ||
| Cash | 10,080 | 10,080 | ||||||
| 24,000 | 24,000 | |||||||
| Supplies | 2,540 | (a) 2,140 | 400 | |||||
| Office Equipment | 19,200 | 19,200 | ||||||
| 2,660 | (b) 1,270 | 3,930 | ||||||
| Accounts Payable | 6,480 | 6,480 | ||||||
| Salaries Payable | (c) 310 | 310 | ||||||
| Lisa Gooch, Capital | 24,480 | 24,480 | ||||||
| Lisa Gooch, Drawing | 3,120 | 3,120 | ||||||
| Fees Earned | 44,760 | 44,760 | ||||||
| Salary Expense | 17,520 | (c) 310 | 17,830 | |||||
| Supplies Expense | (a) 2,140 | 2,140 | ||||||
| Depreciation Expense | (b) 1,270 | 1,270 | ||||||
| Miscellaneous Expense | 1,920 | 1,920 | ||||||
| 78,380 | 78,380 | 3,720 | 3,720 | 79,960 | 79,960 |
Question Content Area
Based on the preceding spreadsheet, prepare an income statement for Bamboo Consulting.
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$Fees earned | |
| Expenses: | ||
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$Salary expense | |
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Supplies expense | |
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Depreciation expense | |
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Miscellaneous expense | |
| Total expenses | fill in the blank 461ad1f62fa8020_11 | |
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$Net income |
Feedback Area
Revenue and expense accounts flow into the income statement. Recall that revenues include fees earned for goods and services.
Question Content Area
Based on the preceding spreadsheet, prepare a statement of owner's equity for Bamboo Consulting.
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$Lisa Gooch, capital, August 1, 20Y4 | |
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$Net income | |
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Withdrawals | |
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Increase in owner's equity | |
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$Lisa Gooch, capital, July 31, 20Y5 |
Feedback Area
The first item normally on the statement of owner's equity is the beginning balance of the owner's capital account. This balance will be changed positively by any owner investments and net income, and negatively by any net losses and withdrawals.
Question Content Area
Based on the preceding spreadsheet, prepare a balance sheet for Bamboo Consulting.
| Assets | ||
| Current assets: | ||
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$Cash | |
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Accounts receivable | |
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Supplies | |
| Total current assets | $fill in the blank b4017bf7dfc0fe1_7 | |
| Property, plant, and equipment: | ||
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$Office equipment | |
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Less accumulated depreciation | |
| Total property, plant, and equipment | fill in the blank b4017bf7dfc0fe1_12 | |
| Total assets | $fill in the blank b4017bf7dfc0fe1_13 | |
| Liabilities | ||
| Current liabilities: | ||
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$Accounts payable | |
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Salaries payable | |
| Total liabilities | $fill in the blank b4017bf7dfc0fe1_18 | |
| Owner's Equity | ||
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Lisa Gooch, capital | |
| Total liabilities and owner's equity | $fill in the blank b4017bf7dfc0fe1_21 |
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