use the following adjusted. trial balance to prepare the classified balance sheet for Nu2U for June 30, 2021. Nu2U, Inc. Adjusted Trial Balance At June 30, 2021 (in thousands) Accounts title Debit Credit Cash $ 102 Accounts receivable 40 Supplies 23 Prepaid insurance 15 land 288 buildings and equipment 450 Accumulated depreciation 63 trademark 65 account payable 35 accrued liabilities 15 unearned revenue 66 long-term-mortgage note payable 125 common stock 350 retained earnings, 07/01/20 324 dividends 45 commission revenue 475 wages expenses 160 supplies expenses 27 depreciation expenses 97 general and administrative expenses 102 interest expense 32 income tax expense 7 totals $1,453 $1,453
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.
use the following adjusted.
|
Nu2U, Inc. Adjusted Trial Balance At June 30, 2021 (in thousands) |
||
| Accounts title | Debit | Credit |
|
Cash |
$ 102 |
|
|
|
40 |
|
|
Supplies |
23 |
|
|
Prepaid insurance |
15 |
|
|
land |
288 |
|
|
buildings and equipment |
450 |
|
|
|
|
63 |
| trademark |
65 |
|
|
account payable |
|
35 |
| accrued liabilities |
|
15 |
|
unearned revenue |
|
66 |
|
long-term-mortgage note payable |
|
125 |
|
common stock |
|
350 |
|
|
|
324 |
|
dividends |
45 |
|
|
commission revenue |
|
475 |
|
wages expenses |
160 |
|
|
supplies expenses |
27 |
|
|
depreciation expenses |
97 |
|
|
general and administrative expenses |
102 |
|
|
interest expense |
32 |
|
|
income tax expense |
7 |
|
| totals |
$1,453 |
$1,453 |
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