Preparing Financial Statements: *Income Statement*Statement of Change in Owner's Equity*Statement of Financial Position*Cash Flow Statement Oct-15Purchases5102,500Cash1012,500To record additional purchase on cashCashOct-181015,000Sales4015,000To record sold merchandise on cashFreight-Out644150Oct-19Cash101150To record freight on saleCashOct-21101100Accounts Receivable112100To record refund paymentSalaries ExpenseUtilities ExpenseRent ExpenseAdvertising Expense2,0009501,200500Oct-23630645635631Cash1014,650To record payment of expensesOwner's, DrawingOct-243021,000Cash1011,000To record withdrawalOct-25Accounts Receivable500Sales500To record sales on accountCashNotes PayableTo record bank loanNO ENTRYOct-3010110,00020210,000Oct-31 General JournalDateParticularsPRDRCROct-01Cash101P30,000P30,000Owner's CapitalTo record initial investmentPurchasesAccounts PayableTo record purchase on accountFreight-In301Oc-0251010,00020110,000Oct-03516145Cash101145To record freight on purchaseEquipmentOct-061302,400Cash1012,400To record bought equipment on cashAccounts PayableOc-072012,000Purchase Returns & Allowances5122,000To record purchase refundAccounts ReceivableOct-081124,500Sales4014,500To record sales on accountAccounts PayablePurchase DiscountsOct-092018,000513160Cash1017,840To record payment on account with2% discountSales Returns & AllowancesAccounts ReceivableTo record refund to credit customerCashSales DiscountsAccounts ReceivableTo record collection from sales onaccountOct-11412200112200Oct-141014,214413861124,300

Since here asked for multi sub part question we will solve first three sub part question for you.…

Preparing Financial Statements: *Income Statement *Statement of Change in Owner's Equity *Statement of Financial Position *Cash Flow Statement

Preparing Financial Statements: Income Statement Statement of Change in Owner's Equity Statement of Financial Position Cash Flow Statement

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

Q: What is the debit for the investment of the owner * O debit assets debit liability debit equity…

A: When owner invests amount or assets in the business, then one side it will increase assets for the…

Q: Which Financial Statement reports Assets, Liabilities, and shareholders Equity? Question 3…

A: Financial statements are those statements which are prepared at the end of accounting period. These…

Q: Describe how debits and credits affect assets, liabilities, and permanent owners’ equity accounts.

A: Asset: Assets refer to the resources owned by the business, which are utilized in the course of the…

Q: explain the connections between the income statement, balance sheet, cash flow statement, and…

A: The income statement, balance sheet, cash flow statement, and statement will be explained:

Q: Which of the following describes the purpose of the statement of shareholders' equity? Multiple…

A: Stockholde's equity statement includes issuance of common and preferred stock, Additional paid in…

Q: Continuing Case 15. Personal Balance Sheet Jamie Lee Jackson, age 24, now a busy full-time college…

A: Total assets refers to the total amount of assets owned by a person or business. Assets are assets…

Q: Explain the components of income statement, Owners equity Statement and Balance sheet statement?

A: Income Statement: It is a financial statement prepared by a company at the end of a financial…

Q: How to use the information to fo 1. income statement 2.statement of stockholders equity 3.balance…

A: Given below are the financial statements of Highlight Construction Company:

Q: A. Indicate the financial statement where the following accounts/statement will be presented. Use…

A: Statement of financial position means where all assets , liabilities and capital is shown. Statement…

Q: Which of the following analysis helps to understand how the assets, liabilities and capitals are…

A: Income statement analysis analyses the components of income and expenses determining the amount of…

Q: Identifying capital and revenue nature receipts and expenses from following information: Salary…

A: Revenue nature expenses are those expenses, which are incurred for daily operations. Capital nature…

Q: Identify and fully explain any FOUR qualitative characteristics of useful financial information.

A: Lets understand the basics. Financial information means a information which is denominated in the…

Q: Define notes to financial statements including what they indicate.

A: Any report of the financial situation or of the financial results of the operations of a…

Q: B. By using the format provided below, indicate the effects of the following transaction on the…

A: 1. Accounting Equation - Accounting Equation is calculated using following equation - Assets =…

Q: Which of the following is a proper listing of the four general-purpose financial statements?…

A: Introduction:- The main aim of General purpose financial statements gives an idea of overall…

Q: Which of the following is also called as statement of retained earnings. Balance Sheet Statement…

A: Retained earnings is the portion of net income which is retained by the firm.

Q: Describe how debits and credits impact assets, liabilities , owner,s equity

A: The books of accounts are prepared as per the double accounting system. All the debits shall be…

Q: State the normal balances for the following accounts: a. Assets b. Liabilities c. Capital d. Drawing…

A: Revenue: Revenue is money your business receives from its normal business activities. Expenses:…

Q: describe the relationships among the income statement, balance sheet, statement of cash fl ows, and…

A: The Income Statement is prepared on accrual basis. The accounting principles such as revenue…

Q: Instructions Prepare an income statement Prepare a statement of retained earnings Prepare a…

A: Income Statement represents the Net Income by deducting all the expenses incurred during the period…

Q: A company’s financial statements consist of the balance sheet, income statement, and statement of…

A: Financial Statement: These statements represent the collection of the organization's summarily…

Q: How to complete a balance sheet note

A: Current assets are items of value owned by your business that will be converted into cash within one…

Q: An income statement is sometimes called thea. statement of financial position.b. owners’ equity…

Q: Prepaid expenses appear in the section of the balance sheet.

A: A balance sheet offers a comprehensive view of a company's financial status at a particular moment,…

Q: From othe basic accounting equation Assets = Liabilities + Owners Equity, where does uncollectible…

A: As per accounting equation, assets = Liabilities + owners' equity

Q: Make your own income statement

A: A statement of income is a financial document that identifies the income and expense of the company.…

Q: Which financial statement would indicate whether a business made a net income (net profit) or…

A: Solution: Income statement is the financial statement which reports revenue earned, expenses…

Q: balance sheet lists v

A: First option is wrong because revenues, expenses, gains and distributions to owners are listed in…

Q: The liabilities on a balance sheet are represented by which of the following? Choose one answer.…

A: Balance Sheet: It is also known as the Statement of Financial Position. It reports the financial…

Q: The statement that shows the resources owned by the owner, the creditors' claim over it and the net…

A: a. Statement of changes in owner's equity - It is a statement which reconciles the opening balance…

Q: relationship among balance sheet, cash flow sheet and income statement

A: Relationship among balance sheet, statement of cash flow sheet, and income statement as…

Q: * ?A financial statement that summarizes company revenue and expenses is Income statement Cash flow…

A: A financial statement seems to be a statement that shows the profitability, consistency, and…

Q: Identify the items or data that appear on multiple financial statements (income statement, statement…

A: Financial statements are the reports that provide the financial information of the business. The…

Q: If you want to create a financial report that shows owner's equity, which statement will you create?…

A: Owner's equity, also known as shareholder's equity, is a company's residual interest in the assets…

Q: Please prepare classified balance sheet and statement of owners equity.

A: Balance sheet lists all the assets which is owned by the business, owner's equity band liabilities…

Q: component of financial statement

A: Financial statement is the final result of recording accounting transactions into records. It…

Q: Define, explain, and provide examples of current and noncurrent assets, current and noncurrent…

A: Dear student, Since you have posted two different questions at a time, only one question ie the…

Question

Preparing Financial Statements:

*Income Statement

*Statement of Change in Owner's Equity

*Statement of Financial Position

*Cash Flow Statement

Oct-15
Purchases
510
2,500
Cash
101
2,500
To record additional purchase on cash
Cash
Oct-18
101
5,000
Sales
401
5,000
To record sold merchandise on cash
Freight-Out
644
150
Oct-19
Cash
101
150
To record freight on sale
Cash
Oct-21
101
100
Accounts Receivable
112
100
To record refund payment
Salaries Expense
Utilities Expense
Rent Expense
Advertising Expense
2,000
950
1,200
500
Oct-23
630
645
635
631
Cash
101
4,650
To record payment of expenses
Owner's, Drawing
Oct-24
302
1,000
Cash
101
1,000
To record withdrawal
Oct-25
Accounts Receivable
500
Sales
500
To record sales on account
Cash
Notes Payable
To record bank loan
NO ENTRY
Oct-30
101
10,000
202
10,000
Oct-31

General Journal
Date
Particulars
PR
DR
CR
Oct-01
Cash
101
P30,000
P30,000
Owner's Capital
To record initial investment
Purchases
Accounts Payable
To record purchase on account
Freight-In
301
Oc-02
510
10,000
201
10,000
Oct-03
516
145
Cash
101
145
To record freight on purchase
Equipment
Oct-06
130
2,400
Cash
101
2,400
To record bought equipment on cash
Accounts Payable
Oc-07
201
2,000
Purchase Returns & Allowances
512
2,000
To record purchase refund
Accounts Receivable
Oct-08
112
4,500
Sales
401
4,500
To record sales on account
Accounts Payable
Purchase Discounts
Oct-09
201
8,000
513
160
Cash
101
7,840
To record payment on account with
2% discount
Sales Returns & Allowances
Accounts Receivable
To record refund to credit customer
Cash
Sales Discounts
Accounts Receivable
To record collection from sales on
account
Oct-11
412
200
112
200
Oct-14
101
4,214
413
86
112
4,300

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

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

The ___________ reports information about assets, liabilities and equity. Select one alternative: research legal balance sheet profit or loss
Identify the correct components of the income statement.A. revenues, losses, expenses, and gainsB. assets, liabilities, and owner’s equityC. revenues, expenses, investments by owners, distributions to ownersD. assets, liabilities, and dividends
In which financial statement will changes to the amounts owed by debtors be reported? O A. Statement of Financial Position O B. Statement of Comprehensive Income O C. Statement of Cash Flows O D. Statement of Changes in Equity
Title What particular item of financial or operating data appears on both the income statement and the statement of owner's equity? Description What particular item of financial or operating data appears on both the income statement and the statement of owner's equity? What item appears on both the balance sheet and the statement of owner's equity? What item appears on both the balance sheet and the statement of cash flows?
What is the owner’s right to the assets (claims to the assets) of the business called? Group of answer choices cash revenue accounts receivable owner’s equity or capital
Identifying Financial Statement Line Items and Accounts Several line items and account titles are listed below. For each, indicate in which of the following financial statement(s) we would likely find the item or account: income statement (IS), balance sheet (BS), statement of stockholders' equity (SE), or statement of cash flows (SCF). (Select all that apply.) Account (a) Cash asset (b) Expenses (c) Noncash assets (d) Contributed capital (e) Cash outflow for capital expenditures (f) Retained earnings (g) Cash inflow for stock issued (h) Cash outflow for dividends (i) Revenue Financial Statement(s) ◆ + + ♦ ♦ + ◆
What Are Financial Statements? Name The Major Financial Statements?
How to fill out an income statement?
What are the importance of financial statement? What is the purpose of financial statement?
The __________ is used to determine a sole proprietor’s or company’s worth by listing all the assets and liabilities. a income statement b balance sheet c productivity analysis d budget forecast
How to prepare a statement of owners equity
The information on the statement of changes in owners equity is used in preparing the income statement. True or false?