Selected accounts from Phipps Corporation’s trial balance are as follows. Phipps Corporation Trial Balance December 31 (Selected Accounts) Debit Credit Cash $70,000 Short-Term Marketable Securities 25,000 Accounts Receivable 14,000 Inventories 47,000 Other Current Assets 10,000 Land 110,000 Equipment 45,000 Accumulated Depreciation-Equipment $5,000 Goodwill 20,000 Other Intangible Assets 17,000 Prepare the assets section of the company’s balance sheet. Phipps Corporation Balance Sheet December 31 Assets Current Assets: $fill in the blank 2 fill in the blank 4 fill in the blank 6 fill in the blank 8 fill in the blank 10 Total Current Assets $fill in the blank 11 fill in the blank 13 fill in the blank 15 fill in the blank 17 Total Assets $fill in the blank 18
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.
Selected accounts from Phipps Corporation’s
| Phipps Corporation | ||
| Trial Balance | ||
| December 31 | ||
| (Selected Accounts) | ||
| Debit | Credit | |
| Cash | $70,000 | |
| Short-Term Marketable Securities | 25,000 | |
| 14,000 | ||
| Inventories | 47,000 | |
| Other Current Assets | 10,000 | |
| Land | 110,000 | |
| Equipment | 45,000 | |
| $5,000 | ||
| 20,000 | ||
| Other Intangible Assets | 17,000 |
Prepare the assets section of the company’s
| Phipps Corporation | |
| Balance Sheet | |
| December 31 | |
| Assets | |
| Current Assets: | |
| $fill in the blank 2 | |
| fill in the blank 4 | |
| fill in the blank 6 | |
| fill in the blank 8 | |
| fill in the blank 10 | |
| Total Current Assets | $fill in the blank 11 |
| fill in the blank 13 | |
| fill in the blank 15 | |
| fill in the blank 17 | |
| Total Assets | $fill in the blank 18 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
