Lasko Trial Balance as of 12/31/20 Unearned Revenue 21,000 Supplies 10,700 Sales 137,000 Salaries 22,000 Retained Earnings 26,300 Rent 9,000 Prepaid Insurance 6,000 Insurance Expense 4,500 Office Equipment 52,000 Notes Payable 42,000 Dividends Paid 5,000 Cost of Goods Sold 63,000 Cash 71,000 Capital Stock 5,400 Additional Paid In Capital 71,000 Accounts Receivable 73,400 Allowance for Bad Debts 2,700 Utilities 2,800 Accounts Payable 14,000 What do all four financial statements look like
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.
Lasko
Unearned Revenue
21,000
Supplies
10,700
Sales
137,000
Salaries
22,000
26,300
Rent
9,000
Prepaid Insurance
6,000
Insurance Expense
4,500
Office Equipment
52,000
Notes Payable
42,000
Dividends Paid
5,000
Cost of Goods Sold
63,000
Cash
71,000
Capital Stock
5,400
Additional Paid In Capital
71,000
73,400
Allowance for
2,700
Utilities
2,800
Accounts Payable
14,000
What do all four financial statements look like
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