Howard Print Shop prepares the following schedule and financial statements on a yearly basis: Among the items that Howard Print Shop accounts for are the following: For each item, indicate the schedule and/or financial statements in which the item will appear. 1. 2. 3. 4. 5. с 6. 7. 8. 9. 10. Direct labor Office supplies used Depreciation on printing machines Finished goods inventory, 12/31 Raw materials inventory, 1/1 Cost of goods manufactured Work in process inventory, 1/1 Office supplies inventory, 12/31 Indirect labor Heat and electricity for the print shop V <
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.
![**Howard Print Shop: Yearly Financial Schedule and Statement Items**
Howard Print Shop prepares the following schedule and financial statements on a yearly basis:
**Items to Account for:**
For each item, indicate the schedule and/or financial statements in which the item will appear.
1. **Direct Labor**
Indicate applicable schedule/financial statement: [Dropdown option]
2. **Office Supplies Used**
Indicate applicable schedule/financial statement: [Dropdown option]
3. **Depreciation on Printing Machines**
Indicate applicable schedule/financial statement: [Dropdown option]
4. **Finished Goods Inventory, 12/31**
Indicate applicable schedule/financial statement: [Dropdown option]
5. **Raw Materials Inventory, 1/1**
Indicate applicable schedule/financial statement: [Dropdown option]
6. **Cost of Goods Manufactured**
Indicate applicable schedule/financial statement: [Dropdown option]
7. **Work in Process Inventory, 1/1**
Indicate applicable schedule/financial statement: [Dropdown option]
8. **Office Supplies Inventory, 12/31**
Indicate applicable schedule/financial statement: [Dropdown option]
9. **Indirect Labor**
Indicate applicable schedule/financial statement: [Dropdown option]
10. **Heat and Electricity for the Print Shop**
Indicate applicable schedule/financial statement: [Dropdown option]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd17b9706-e9c9-4374-9367-0a496aa440c1%2F1400b4ba-4bd3-4e4a-8530-ec458b178a51%2Ff5eqt79_processed.jpeg&w=3840&q=75)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
