rrow Hospitality prepares adjustments monthly and showed the following at September 30, 2023: ARROW HOSPITALITY Trial Balances Account Cash Accounts receivable Repair supplies Prepaid rent office furniture Accounts payable Notes payable Eli Arrow, capital Eli Arrow, withdrawals Hospitality revenues salaries expense Wages expense Totals September 30, 2023 Unadjusted Trial Balance Dr. $ 6,800 12,000 2,600 14,800 30, 640 Cr. $ 8,see 24,800 68,798 136,000 View transaction list 5,800 148,000 17,758 $238,398 $238, 398 Adjustments Dr. Cr. Adjusted Trial Balance Dr. Cr. dditional Information available for the month ended September 30, 2023: Interest of $186 had accrued on the notes payable for the month of September. The office furniture was acquired on September 1, 2023, and has an estimated four-year life. The furnitu will be sold for about $2,800 at the end of its four-year life. A count of the Repair Supplies revealed a balance on hand of $780. A review of the Prepaid Rent account showed that $12,000 had been used during September. Accrued wages of $3,200 had not been recorded at month-end. The September Internet bill for $120 had been received and must be paid by October 14. Accrued revenues of $7,000 were not recorded at September 30. equired: repare adjusting entries for the month ended September 30, 2023, for each of (a) through (g) above.
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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- The office furniture was acquired on September 1, 2023, and has an estimated four-year life. The furniture will be sold for about $2,200 at the end of its four-year life. what is the amount of
depreciation as of sept 30 2023
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