Name: Time: Queen City Vidadape Trial Balance December 31, 2019 Accaurt Tites Debit Credt Cashin Bark 125,000 30,000 Accounts Receivable Allowence for Uhcollectibe Accourts Unused Supplies Videdape Inventory Fumiture and FiXİures 10,000 105,000 80,000 Accumlated Depreciation-Fumiture and Fixtures Notes Payable Accaunts Payable Acaued Interest 50,000 35,000 Edgar Datoya, Capital Edgar Detoya, Withdrawels Rental Income 162,000 180,000 18,000 Other Income Uncallectible Accaunts Depreciation Expense InterestExpense Damaged Vidadtape Supplies Used Salaries Expense 95,000 445,000 Tdal 445,000 The following errors and omissions were discovered at year-end prior to closing of the books: a. Uncollectible accounts should be provided at 1% of the outstanding receivable balance. b. Actual cost of supplies used amounted to P6,000. C. Physical inventory conducted on December 31, 2019 were found to have P15,000 cost of videotapes to have been damaged. Furniture was acquired on October 1, 2019 with an estimated life of 5 years and with a scrap value of P5,000 at the end of its life. Owner's withdrawal was erroneously charges to salaries expense, P20,000. d. e. f. Interest on Notes Payable has been accrued, P4,000. g. Payment for the purchase of videotapes on account was not recorded, P15,000. equired: 1. Prepare a 10-cloumn worksheet with adjusting entries. Use the form below.
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.
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