Required information Use the following information for the Exercises 3-7 below. (Algo) [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 400 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning inventory. Date January 1 January 10 January 20 January 25 January 30 Activities Beginning inventory. Sales Purchase Sales Purchase Totals Units 230 units 190 units Acquired at Cost $ 15.50 = e e $ 14.50 = 400 units e $ 14.00 = 820 units $ 3,565 2,755 5,600 $ 11,920 Units sold at Retail 180 units 220 units 400 units e e $ 24.50 $ 24.50 ercise 5-4 (Algo) Perpetual: Journalizing transactions LO P1 cord journal entries for Laker Company's sales and purchases transactions. Assume for this assignment that the company uses a perpetual entory system and FIFO. All sales and purchases are made on account, and no discounts are offered.
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.
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![Required information
Use the following information for the Exercises 3-7 below. (Algo)
[The following information applies to the questions displayed below.]
Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending
inventory consists of 400 units from the January 30 purchase, 5 units from the January 20 purchase, and 15 units from beginning
inventory.
Date
January 1
January 10
January 20
January 25
January 30
Activities
Beginning inventory
Sales
Purchase
Sales
Purchase
Totals
Units Acquired at Cost
230 units @ $15.50 =
190 units
@
400 units @
820 units
$ 14.50 =
$ 14.00 =
Exercise 5-4 (Algo) Perpetual: Journalizing transactions LO P1
$ 3,565
2,755
5,600
$ 11,920
Units sold at Retail
180 units
220 units
400 units
@
@
$ 24.50
$ 24.50
Record journal entries for Laker Company's sales and purchases transactions. Assume for this assignment that the company uses a perpetual
inventory system and FIFO. All sales and purchases are made on account, and no discounts are offered.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F756650b3-18d1-4b86-ac9b-c71ad5c7bd76%2F267529e8-20db-496f-909a-38308a519c1e%2Fa2duiur9_processed.png&w=3840&q=75)
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