Karleen's Catering Service provides catered meals to individuals and businesses. Karleen's purchases its food ready to serve from Mel's Restaurant. In order to prepare a realistic trial balance, the events described below are aggregations of many individual events during 2019. Common stock was issued for $22,000. During the year, Karleen's paid office rent of $13,500. Utilities expenses incurred and paid were $5,320. Wages of $58,800 were earned by employees and paid during the year. During the year, Karleen's provided catering services: On credit $128,200 For cash 18,650 Karleen's paid $59,110 for supplies purchased and used during the year. Karleen's paid dividends in the amount of $3,500. Karleen's collected accounts receivable in the amount of $109,400. 4. Prepare a trial balance at December 31, 2019. Assume that all beginning account balances at January 1, 2019, are zero. If an amount box does not require an entry, leave it blank. Karleen's Catering Service Trial Balance December 31, 2019 Account Debit Credit $fill in the blank d4246902df96fd0_2 $fill in the blank d4246902df96fd0_3 fill in the blank d4246902df96fd0_5 fill in the blank d4246902df96fd0_6 fill in the blank d4246902df96fd0_8 fill in the blank d4246902df96fd0_9 fill in the blank d4246902df96fd0_11 fill in the blank d4246902df96fd0_12 fill in the blank d4246902df96fd0_14 fill in the blank d4246902df96fd0_15 fill in the blank d4246902df96fd0_17 fill in the blank d4246902df96fd0_18 fill in the blank d4246902df96fd0_20 fill in the blank d4246902df96fd0_21 fill in the blank d4246902df96fd0_23 fill in the blank d4246902df96fd0_24 fill in the blank d4246902df96fd0_26 fill in the blank d4246902df96fd0_27 $fill in the blank d4246902df96fd0_28 $fill in the blank d4246902df96fd0_29
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.
The Accounting Cycle
Karleen's Catering Service provides catered meals to individuals and businesses. Karleen's purchases its food ready to serve from Mel's Restaurant. In order to prepare a realistic
- Common stock was issued for $22,000.
- During the year, Karleen's paid office rent of $13,500.
- Utilities expenses incurred and paid were $5,320.
- Wages of $58,800 were earned by employees and paid during the year.
- During the year, Karleen's provided catering services:
On credit $128,200 For cash 18,650 - Karleen's paid $59,110 for supplies purchased and used during the year.
- Karleen's paid dividends in the amount of $3,500.
- Karleen's collected
accounts receivable in the amount of $109,400.
4. Prepare a trial balance at December 31, 2019. Assume that all beginning account balances at January 1, 2019, are zero. If an amount box does not require an entry, leave it blank.
| Karleen's Catering Service | ||
| Trial Balance | ||
| December 31, 2019 | ||
| Account | Debit | Credit |
| $fill in the blank d4246902df96fd0_2 | $fill in the blank d4246902df96fd0_3 | |
| fill in the blank d4246902df96fd0_5 | fill in the blank d4246902df96fd0_6 | |
| fill in the blank d4246902df96fd0_8 | fill in the blank d4246902df96fd0_9 | |
| fill in the blank d4246902df96fd0_11 | fill in the blank d4246902df96fd0_12 | |
| fill in the blank d4246902df96fd0_14 | fill in the blank d4246902df96fd0_15 | |
| fill in the blank d4246902df96fd0_17 | fill in the blank d4246902df96fd0_18 | |
| fill in the blank d4246902df96fd0_20 | fill in the blank d4246902df96fd0_21 | |
| fill in the blank d4246902df96fd0_23 | fill in the blank d4246902df96fd0_24 | |
| fill in the blank d4246902df96fd0_26 | fill in the blank d4246902df96fd0_27 | |
| $fill in the blank d4246902df96fd0_28 | $fill in the blank d4246902df96fd0_29 |
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