Required information [The following information applies to the questions dlisplayed below) Athletic Performance Company (APC) was Incorporated as a private company. The company's accounts Included the following at July 1: $ 4,5ee 242,000 12, 200 348,eee 25,5ee 95,e00 28,25e e 6,ese Accounts Payable Buildings Cash Connon Stock Equipnent Land Notes Payable (long-term) Retained Earnings Supplies During the month of July, the company had the following activities: a. Issued 2100 shares of common stock for $210,000 cash. b. Borrowed $53,000 cash from a local bank, payable In two years. c. Bought a bullding for $210,000: pald $59,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $174,000. e. Purchased supples for $16,000 on account
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 dlisplayed below]
Athletic Performance Company (APC) was Incorporated as a private company. The company's accounts Included the
following at July 1:
$ 4,5ee
242,ee0
12,200
348,ee0
25,5e0
95,eee
28,250
Accounts Payable
Buildings
Cash
Connon Stock
Equipment
Land
Notes Payable (long-tern)
Retained Earnings
Supplies
6,050
During the month of July, the company had the following activities:
a. Issued 2100 shares of common stock for $210,000 cash.
b. Borrowed $53,000 cash from a local bank, payable in two years.
c. Bought a bullding for $210,000: pald $59,000 in cash and signed a three-year note for the balance.
d. Pald cash for equipment that cost $174,000.
e. Purchased supplies for $16,000 on account
4. Prepare a trial balance at July 31. Include Retalned Earnings on the balance sheet even though the account has a zero balance.
ATHLETIC PERFORMANCE COMPANY
Trial Balance
At July 31
Debit
Credit
12,200 O
6,050 O
25,500 O
242,000 O
Cash
Supplies
Equipment
Buildings
95,000 O
Is
Land
Accounts Payable
4,500 8
Notes Payable (long-term)
28,250 8
348,000 0
Common Stock
Retained Earnings
Totals
$ 380,750
$ 380,750
*Red text indicates no reiponse was expected in a call or a formula-based calculation is incorrect; no points deducted.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4959d4f7-c515-4b84-8a14-00389cef5562%2F540d3f04-9317-4899-a91e-b9e622bbcf4e%2F64r320g_processed.png&w=3840&q=75)
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