Required information [The following information applies to the questions displayed below.] The following accounts are taken from the financial statements of Paradise West End Resorts at June 30, 2019. (Amounts are in millions.) Accounts Payable Accounts Receivable Cash Common Stock Equipment Income Tax Expense Interest Expense Notes Payable (long-term) Prepaid Rent Retained Earnings Service Revenue Short-Term Investments Software $ 1,300 300 3,100 10,400 2,700 300 50 900 1,100 2,600 5,300 6,300 1,700 Required: 1. Prepare a classified balance sheet at June 30, 2019. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
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.
![Required information
[The following information applies to the questions displayed below.]
The following accounts are taken from the financial statements of Paradise West End Resorts at June 30, 2019. (Amounts
are in millions.)
Accounts Payable
Accounts Receivable
Cash
Common Stock
Equipment
Income Tax Expense
Interest Expense
Notes Payable (long-term)
Prepaid Rent
Retained Earnings
Service Revenue
Short-Term Investments
Software
$ 1,300
300
3,100
10,400
2,700
300
50
900
1,100
2,600
5,300
6,300
1,700
Required:
1. Prepare a classified balance sheet at June 30, 2019. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
PARADISE WEST END RESORTS
Balance Sheet](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F299a85d8-24b6-4362-b57d-b7ff9e1eb2d5%2F4fe08678-b9cb-41c6-8030-ad2c070da158%2F9ltog_processed.jpeg&w=3840&q=75)
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