Please answer Part 2:Alfred Hansen publishes an online travel blog. In need of cash, the business applies for a loan with National Bank. The bank requires borrowers to submit an income statement, statement of owner's equity, balance sheet, and statement of cash flows. With little knowledge of accounting, Alfred Hansen, owner, does not know how to proceed.Requirements1. Is there a specific order in which the financial statements must be prepared? ***already answered*** Income statement, Statement of owner's equity, Balance sheet and Statement of cash flows)2. Explain the steps to prepare each statement (Income statement, Statement of owner's equity, Balance sheet and Statement of cash flows), filling in the boxes with the provided drop-down boxes (see attached images) erEach asset account is listed separately and then totaled. Cash is always listed first.Each dollar amount is calculated by evaluating the cash column on the transaction detail.Each expense account is listed separately from largest to smallest and then subtotaled if necessary.Financing activities include cash from owner contribution and payment of cash for owner withdrawals.Investing activities include the purchase and sale of land and equipment for cash.Liabilities are listed separately and then totaled. Liabilities that are to be paid first are listed first.Net income is calculated as total revenues minus total expenses.Operating activities involve cash receipts for services provided and cash payments for expenses paid.The beginning capital is listed first and will always be the ending capital from the previous time period.The ending cash balance must match the cash balance on the balance sheet.The header includes the name of the business, the title of the statement, and the date, listed as a period of time.The header includes the name of the business, the title of the statement, and the date, listed as a specific date.Operating activities involve cash receipts for services provided and cash payments for expenses paid.61%The header includes the name of the business, the title of the statement, and the date, listed as a specific date.The net income are added to the beginning retained earnings.The owner's contributions and net income is added to the beginning capital.The owner's equity section includes the ending capital from the statement of owner's equityThe owner's withdrawals are subtracted from capital. If there had been a net loss, this would also be subtracted.The revenue accounts are always listed first and then subtotaled if necessary.This statement must always balance. Assets = Liabilities + EquityOperating activities involve cash receipts for services provided and cash payments for expenses paid.

(1) Financial Statements:-Income StatementHow to prepare :—c. Each expense account is listed…

Answered: Please answer Part 2: Alfred Hansen…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Please answer Part 2:

Alfred Hansen publishes an online travel blog. In need of cash, the business applies for a loan with National Bank. The bank requires borrowers to submit an income statement, statement of owner's equity, balance sheet, and statement of cash flows. With little knowledge of accounting, Alfred Hansen, owner, does not know how to proceed.

Requirements

1. Is there a specific order in which the financial statements must be prepared?

***already answered*** Income statement, Statement of owner's equity, Balance sheet and Statement of cash flows)

2. Explain the steps to prepare each statement (Income statement, Statement of owner's equity, Balance sheet and Statement of cash flows), filling in the boxes with the provided drop-down boxes (see attached images)

er
Each asset account is listed separately and then totaled. Cash is always listed first.
Each dollar amount is calculated by evaluating the cash column on the transaction detail.
Each expense account is listed separately from largest to smallest and then subtotaled if necessary.
Financing activities include cash from owner contribution and payment of cash for owner withdrawals.
Investing activities include the purchase and sale of land and equipment for cash.
Liabilities are listed separately and then totaled. Liabilities that are to be paid first are listed first.
Net income is calculated as total revenues minus total expenses.
Operating activities involve cash receipts for services provided and cash payments for expenses paid.
The beginning capital is listed first and will always be the ending capital from the previous time period.
The ending cash balance must match the cash balance on the balance sheet.
The header includes the name of the business, the title of the statement, and the date, listed as a period of time.
The header includes the name of the business, the title of the statement, and the date, listed as a specific date.
Operating activities involve cash receipts for services provided and cash payments for expenses paid.
61%
The header includes the name of the business, the title of the statement, and the date, listed as a specific date.
The net income are added to the beginning retained earnings.
The owner's contributions and net income is added to the beginning capital.
The owner's equity section includes the ending capital from the statement of owner's equity
The owner's withdrawals are subtracted from capital. If there had been a net loss, this would also be subtracted.
The revenue accounts are always listed first and then subtotaled if necessary.
This statement must always balance. Assets = Liabilities + Equity
Operating activities involve cash receipts for services provided and cash payments for expenses paid.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions