The following accounts are extracted from the books of X Inc. on December 31, 2020: Account Receivable S60,000 Accounts Payable 75,000 Accumulated Depreciation: Land Improvement 160,000 Allowance for Doubtful Accounts 26,000 Accrued Liabilities 204,000 Bonds Payable 373,000 Bond Sinking Fund 220,000 Cash 140,000 Investment in Stock 132,000 Common Stock 414,000 Goodwill ?? Inventory 322,000 Land 260,000 Land held for speculation 88,000 Land Improvement 700,000 Mortgage Payable 176,000 Premium on Bonds Payable 36,000 Premium on Common Stock 276,000 Prepaid Insurance (24 months) 40,000 Retained Earnings 440,000 Supplies 16,000 Trading Securities, originally purchased at $70,000, are traded at a fair value of $88,000 Treasury Stock ?? Uncarned Service Revenue ?? Based on the data above, current assets were: $582,000 $600,000 $626,000
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.
![2:25 O
ll 30%
Based on the data above, land improvement
had a book value of:
$700,000
$800,000
$540,000
None of the above
Based on the data above, total long term
liabilities were: *
$805,000
$585,000
$549,000
None of the above
Based on the data above, and knowing that
total liabilities were $900,000, what was
the amount
unearn ed corvice rov onue? *](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9c5bbb58-ddbb-41b3-b2a7-5d1b80c70980%2F8f037571-2525-4b44-9a50-d144f7604247%2Fupt81of_processed.jpeg&w=3840&q=75)
![2:25 O
3 all 30%
The following accounts are extracted from
the books of X Inc. on December 31, 2020:
Account Receivable
$60,000
Accounts Payable
75,000
Accumulated Depreciation: Land Improvement
160,000
Allowance for Doubtful Accounts
26,000
Accrued Liabilities
204,000
Bonds Payable
373,000
Bond Sinking Fund
220,000
Cash
140,000
Investment in Stock
132,000
Common Stock
414,000
Goodwill
??
Inventory
322,000
Land
0,000
Land held for speculation
88,000
Land Improvement
700,000
Mortgage Payable
176,000
Premium on Bonds Payable
36,000
Premium on Common Stock
276,000
Prepaid Insurance (24 months)
40,000
Retained Earnings
440,000
Supplies
16,000
Trading Securities, originally purchased at $70,000, are
traded at a fair value of $88,000
Treasury Stock
??
Uncarned Service Revenue
??
Based on the data above, current assets
were:
$582,000
$600,000
$626,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9c5bbb58-ddbb-41b3-b2a7-5d1b80c70980%2F8f037571-2525-4b44-9a50-d144f7604247%2Fmh4r05t_processed.jpeg&w=3840&q=75)
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