Following are the adjustment data for Bruno Company: a-b. Merchandise inventory (ending), $1,045. c. Professional fees earned, $32,100. d. Supplies inventory (on hand), $1,415. e. Insurance expired, $750. f. Depreciation of office equipment, $300. g. Wages accrued, $630. Record these data in the Adjustments column of the following work sheet. If an amount is zero, enter "0". Bruno Company Worksheet TRIAL BALANCE ADJUSTMENTS ACCOUNT NAME DEBIT CREDIT DEBIT CREDIT Cash 32,725 fill in the blank 9c8eb9003064f9b_1 fill in the blank 9c8eb9003064f9b_2 Accounts Receivable 960 fill in the blank 9c8eb9003064f9b_3 fill in the blank 9c8eb9003064f9b_4 Merchandise Inventory 1,250 fill in the blank 9c8eb9003064f9b_5 fill in the blank 9c8eb9003064f9b_6 Supplies 1,525 fill in the blank 9c8eb9003064f9b_7 fill in the blank 9c8eb9003064f9b_8 Prepaid Insurance 930 fill in the blank 9c8eb9003064f9b_9 fill in the blank 9c8eb9003064f9b_10 Office Equipment 5,450 fill in the blank 9c8eb9003064f9b_11 fill in the blank 9c8eb9003064f9b_12 Accum. Depr.-Office Equipment fill in the blank 9c8eb9003064f9b_13 fill in the blank 9c8eb9003064f9b_14 Accounts Payable 480 fill in the blank 9c8eb9003064f9b_15 fill in the blank 9c8eb9003064f9b_16 M. Bruno, Capital 11,750 fill in the blank 9c8eb9003064f9b_17 fill in the blank 9c8eb9003064f9b_18 M. Bruno, Drawing 1,125 fill in the blank 9c8eb9003064f9b_19 fill in the blank 9c8eb9003064f9b_20 Unearned Professional Fees 34,700 fill in the blank 9c8eb9003064f9b_21 fill in the blank 9c8eb9003064f9b_22 Wages Expense 1,420 fill in the blank 9c8eb9003064f9b_23 fill in the blank 9c8eb9003064f9b_24 Advertising Expense 350 fill in the blank 9c8eb9003064f9b_25 fill in the blank 9c8eb9003064f9b_26 Rent Expense 700 fill in the blank 9c8eb9003064f9b_27 fill in the blank 9c8eb9003064f9b_28 Telephone Expense 130 fill in the blank 9c8eb9003064f9b_29 fill in the blank 9c8eb9003064f9b_30 Utilities Expense 190 fill in the blank 9c8eb9003064f9b_31 fill in the blank 9c8eb9003064f9b_32 Miscellaneous Expense 175 fill in the blank 9c8eb9003064f9b_33 fill in the blank 9c8eb9003064f9b_34 Income Summary fill in the blank 9c8eb9003064f9b_35 fill in the blank 9c8eb9003064f9b_36 Professional Fees Income fill in the blank 9c8eb9003064f9b_37 fill in the blank 9c8eb9003064f9b_38 Supplies Expense fill in the blank 9c8eb9003064f9b_39 fill in the blank 9c8eb9003064f9b_40 Insurance Expense fill in the blank 9c8eb9003064f9b_41 fill in the blank 9c8eb9003064f9b_42 Depr. Expense-Office Equipment fill in the blank 9c8eb9003064f9b_43 fill in the blank 9c8eb9003064f9b_44 Wages Payable fill in the blank 9c8eb9003064f9b_45 fill in the blank 9c8eb9003064f9b_46 46,930 46,930
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.
Following are the adjustment data for Bruno Company:
| a-b. | Merchandise inventory (ending), $1,045. |
| c. | Professional fees earned, $32,100. |
| d. | Supplies inventory (on hand), $1,415. |
| e. | Insurance expired, $750. |
| f. | |
| g. | Wages accrued, $630. |
Record these data in the Adjustments column of the following work sheet.
If an amount is zero, enter "0".
| Bruno Company Worksheet |
||||
|---|---|---|---|---|
| ADJUSTMENTS | ||||
| ACCOUNT NAME | DEBIT | CREDIT | DEBIT | CREDIT |
| Cash | 32,725 | fill in the blank 9c8eb9003064f9b_1 | fill in the blank 9c8eb9003064f9b_2 | |
| 960 | fill in the blank 9c8eb9003064f9b_3 | fill in the blank 9c8eb9003064f9b_4 | ||
| Merchandise Inventory | 1,250 | fill in the blank 9c8eb9003064f9b_5 | fill in the blank 9c8eb9003064f9b_6 | |
| Supplies | 1,525 | fill in the blank 9c8eb9003064f9b_7 | fill in the blank 9c8eb9003064f9b_8 | |
| Prepaid Insurance | 930 | fill in the blank 9c8eb9003064f9b_9 | fill in the blank 9c8eb9003064f9b_10 | |
| Office Equipment | 5,450 | fill in the blank 9c8eb9003064f9b_11 | fill in the blank 9c8eb9003064f9b_12 | |
| Accum. Depr.-Office Equipment | fill in the blank 9c8eb9003064f9b_13 | fill in the blank 9c8eb9003064f9b_14 | ||
| Accounts Payable | 480 | fill in the blank 9c8eb9003064f9b_15 | fill in the blank 9c8eb9003064f9b_16 | |
| M. Bruno, Capital | 11,750 | fill in the blank 9c8eb9003064f9b_17 | fill in the blank 9c8eb9003064f9b_18 | |
| M. Bruno, Drawing | 1,125 | fill in the blank 9c8eb9003064f9b_19 | fill in the blank 9c8eb9003064f9b_20 | |
| Unearned Professional Fees | 34,700 | fill in the blank 9c8eb9003064f9b_21 | fill in the blank 9c8eb9003064f9b_22 | |
| Wages Expense | 1,420 | fill in the blank 9c8eb9003064f9b_23 | fill in the blank 9c8eb9003064f9b_24 | |
| Advertising Expense | 350 | fill in the blank 9c8eb9003064f9b_25 | fill in the blank 9c8eb9003064f9b_26 | |
| Rent Expense | 700 | fill in the blank 9c8eb9003064f9b_27 | fill in the blank 9c8eb9003064f9b_28 | |
| Telephone Expense | 130 | fill in the blank 9c8eb9003064f9b_29 | fill in the blank 9c8eb9003064f9b_30 | |
| Utilities Expense | 190 | fill in the blank 9c8eb9003064f9b_31 | fill in the blank 9c8eb9003064f9b_32 | |
| Miscellaneous Expense | 175 | fill in the blank 9c8eb9003064f9b_33 | fill in the blank 9c8eb9003064f9b_34 | |
| Income Summary | fill in the blank 9c8eb9003064f9b_35 | fill in the blank 9c8eb9003064f9b_36 | ||
| Professional Fees Income | fill in the blank 9c8eb9003064f9b_37 | fill in the blank 9c8eb9003064f9b_38 | ||
| Supplies Expense | fill in the blank 9c8eb9003064f9b_39 | fill in the blank 9c8eb9003064f9b_40 | ||
| Insurance Expense | fill in the blank 9c8eb9003064f9b_41 | fill in the blank 9c8eb9003064f9b_42 | ||
| Depr. Expense-Office Equipment | fill in the blank 9c8eb9003064f9b_43 | fill in the blank 9c8eb9003064f9b_44 | ||
| Wages Payable | fill in the blank 9c8eb9003064f9b_45 | fill in the blank 9c8eb9003064f9b_46 | ||
| 46,930 | 46,930 |
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