Reporting Amounts on the Four Basic Financial Statements and Evaluating Financial Statements [LO 1-2, LO 1-3] Skip to question [The following information applies to the questions displayed below.] Cheese Factory Incorporated reported the following information for the fiscal year ended August 31, 2021. Accounts Payable $153,000 Accounts Receivable 23,000 Cash (balance on September 1, 2020) 83,000 Cash (balance on August 31, 2021) 93,000 Common Stock 100,000 Dividends 12,000 Equipment 763,000 Notes Payable 38,000 Office Expense 135,000 Prepaid Rent 59,000 Retained Earnings (beginning) 418,000 Salaries and Wages Expense 995,000 Salaries and Wages Payable 178,000 Sales Revenue 1,803,000 Supplies 40,000 Utilities Expense 570,000 Other cash flow information: Additional investments by stockholders $ 44,000 Cash paid to purchase equipment 52,000 Cash paid to suppliers and employees 1,514,000 Repayments of borrowings 163,000 Cash received from customers 1,701,000 Cash received from borrowings 6,000 Dividends paid in cash 12,000 PB1-3 (Algo) Part 4 Prepare a statement of cash flows for the fiscal year ended August 31, 2021. (Cash outflows should be entered as negative
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Reporting Amounts on the Four Basic Financial Statements and Evaluating Financial Statements [LO 1-2, LO 1-3]
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[The following information applies to the questions displayed below.]
Cheese Factory Incorporated reported the following information for the fiscal year ended August 31, 2021.
| Accounts Payable | $153,000 |
|---|---|
| 23,000 | |
| Cash (balance on September 1, 2020) | 83,000 |
| Cash (balance on August 31, 2021) | 93,000 |
| Common Stock | 100,000 |
| Dividends | 12,000 |
| Equipment | 763,000 |
| Notes Payable | 38,000 |
| Office Expense | 135,000 |
| Prepaid Rent | 59,000 |
| 418,000 | |
| Salaries and Wages Expense | 995,000 |
| Salaries and Wages Payable | 178,000 |
| Sales Revenue | 1,803,000 |
| Supplies | 40,000 |
| Utilities Expense | 570,000 |
| Other cash flow information: | |
|---|---|
| Additional investments by stockholders | $ 44,000 |
| Cash paid to purchase equipment | 52,000 |
| Cash paid to suppliers and employees | 1,514,000 |
| Repayments of borrowings | 163,000 |
| Cash received from customers | 1,701,000 |
| Cash received from borrowings | 6,000 |
| Dividends paid in cash | 12,000 |
PB1-3 (Algo) Part 4
-
Prepare a statement of
cash flows for the fiscal year ended August 31, 2021. (Cash outflows should be entered as negative
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