How to complete this balance sheet?
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.
How to complete this
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P2-3 (Algo) Recording Transactions in T-Accounts, Preparing the Balance Sheet from a Trial Balance, and
Evaluating the Current Ratio LO2-2, 2-4, 2-5
[The following information applies to the questions displayed below.]
Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records
reflected the following:
Cash
Investments (short-term)
Accounts receivable
Inventory
Notes receivable (long-term)
Equipment
Factory building
Intangibles
During the current year, the company had the following summarized activities:
P2-3 Part 5
a. Purchased short-term investments for $8,800 cash.
b. Lent $6,100 to a supplier who signed a two-year note.
c. Purchased equipment that cost $22,000; paid $5,000 cash and signed a one-year note for the balance.
d. Hired a new president at the end of the year. The contract was for $79,000 per year plus options to purchase
company stock at a set price based on company performance. The new president begins her position on January 1
of next year.
e. Issued an additional 1,300 shares of $0.50 par value common stock for $12,000 cash.
f. Borrowed $19,000 cash from a local bank, payable in three months.
g. Purchased a patent (an intangible asset) for $1,700 cash.
$20,000
Accounts payable
3,300 Accrued liabilities payable
Notes payable (current)
3,600
25,000 Notes payable (noncurrent)
1,500 Common stock
h. Built an addition to the factory for $27,000; paid $8,800 in cash and signed a three-year note for the balance.
i. Returned defective equipment to the manufacturer, receiving a cash refund of $3,900.
5. Prepare a classified balance sheet at December 31 of the current year.
Current assets:
Cash
Investments
Accounts receivable
Inventory
Total current assets
Non-current assets:
Notes receivable
45,000 Additional paid-in capital
97,000 Retained earnings
4,800
Assets
Equipment
Factory building
Intangibles
Total non-current assets
Total assets
333333
> Answer is not complete.
JAGUAR PLASTICS COMPANY
Balance Sheet
At December 31
Current liabilities:
✔$ 24,500✔ Accounts payable
✓
✓
✔
65,200
Accrued liabilities payable
12,100✔
3,600✔ Notes Payable (current)
25,000 ✓
Total current liabilities
7,600
63,100✔
124,000✔ Common stock
6,500✔
Total liabilities
Liabilities
$19,000
2,600
6,000
49,000
Stockholders' Equity
Additional paid-in capital
Retained earnings
✓ 201,200
Total stockholders' equity
$ 266,400 Total liabilities and stockholders' equity
10, 200
91,800
21,600
$ 19,000✔
✓ 2,600✔
42,000
3
3
✓
63,600
63,600
10,850
103,150
21,600
✓
135,600
✔ $ 199,200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F266d5c88-4132-4eca-8561-6ebd3b0393f5%2Ffad219f7-3b84-4019-91e8-e9f0f5e30b12%2Fj4zl2gm_processed.png&w=3840&q=75)
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