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

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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).

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