Healthy Bites, is an incorporated organic packaged food start-up located in Gowanus, Brooklyn During the first month of operations of the business, the following events and transactions occurred. 1 A venture capital firm invested $39,000 cash in exchange for common stock. 2 Healthy Bites hired a marketing director at a salary of $1,800 per month. 3 Purchased $1,500 of organic food supplies on account from Keith’s Farm. 7 Paid warehouse rent of $1,200 for the month. 11 Sold 15 cases of Healthy Bites product and Joe’s Bar $1,700 for product sold. 12 Received $5,000 advance on products to be delivered at a later date. 17 Received cash of $1,500 for product sold to The Ale House. 31 Paid marketing director $1,800 salary for the month. 31 Paid 35% of balance due Keith’s Farm. The company uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Food Supplies, No. 201 Accounts Payable, No. 205 Unearned Revenue, No. 311 Common Stock, No. 400 Sales Revenue, No. 726 Salaries Expense, and No. 729 Rent Expense. Instructions (a) Journalize the transactions. (Part I). (b) Post to the ledger accounts (Part II). (c) Prepare a trial balance on May 31, 2016 (Part II). Part III Income Statement Retained Earnings Statement Balance Sheet I just want Part iii to be solved
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.
Healthy Bites, is an incorporated organic packaged food start-up located in Gowanus, Brooklyn During the first month of operations of the business, the following events and transactions occurred.
1 A venture capital firm invested $39,000 cash in exchange for common stock. 2 Healthy Bites hired a marketing director at a salary of $1,800 per month. 3 Purchased $1,500 of organic food supplies on account from Keith’s Farm. 7 Paid warehouse rent of $1,200 for the month. 11 Sold 15 cases of Healthy Bites product and Joe’s Bar $1,700 for product sold. 12 Received $5,000 advance on products to be delivered at a later date. 17 Received cash of $1,500 for product sold to The Ale House. 31 Paid marketing director $1,800 salary for the month. 31 Paid 35% of balance due Keith’s Farm. The company uses the following chart of accounts: No. 101 Cash, No. 112
Instructions (a) Journalize the transactions. (Part I). (b) Post to the ledger accounts (Part II). (c) Prepare a
Part III
Income Statement
I just want Part iii to be solved
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