18,000 188,000 40,000 32,000 34,000 58,000 24,800 $ 1,134,800 expense-tquipment Salaries expense mages expense Interest expense Office supplies expense Advertising expense Repairs expense-Automobiles Totals $ 1,134,800 tequired: Use the information in the adjusted trial balance to prepare (a) the income statement for the year ended December 31; (b) the statement of retained earnings for the year ended December 31 [Note: Retained Earnings at December 31 of the prior year was $235,800.); and (c) the balance sheet as of December 31. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare the statement of retained earnings for the year ended December 31. [Note: Retained Earnings at December 31 of the prior year was $235,800.] CHIARA COMPANY Statement of Retained Earnings For Year Ended December 31 Retained earnings, December 31 prior year end Retained earnings, December 31 current year end $
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.
![18,000
188,000
40,000
32,000
34,000
58,000
24,800
$ 1,134,800 $ 1,134,800
expense-Equipment
Salaries expense
wages expense
Interest expense
Office supplies expense
Advertising expense
Repairs expense-Automobiles
Totals
tequired:
Use the information in the adjusted trial balance to prepare (a) the income statement for the year ended December 31; (b) the
statement of retained earnings for the year ended December 31 [Note: Retained Earnings at December 31 of the prior year was
$235,800.]; and (c) the balance sheet as of December 31.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Prepare the statement of retained earnings for the year ended December 31. [Note: Retained Earnings at December 31 of the
prior year was $235,800.]
CHIARA COMPANY
Statement of Retained Earnings
For Year Ended December 31
Retained earnings, December 31 prior year end
Retained earnings, December 31 current year end
< Required A
Required C
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Income statements is prepared to calculate the profit of company. it is calculated by finding the total revenue and subtracting the total expenses.
Retained statement is prepared by the company to know the ending balance of the retained earnings that will appear in the balance sheet. it is found out by adding the net income that has been on during the year and subtracting the dividend that has to be paid.
balance sheet is prepared by the company at the end of year to know its financial positions.all the assets and liabilities are taken into consideration. It is generally prepared after preparing income statement and retained earnings statement.
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