ased on the preceding spreadsheet, prepare an income statement for Bamboo Consulting. Bamboo Consulting
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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Financial Statements from the End-of-Period Spreadsheet
Bamboo Consulting is a consulting firm owned and operated by Lisa Gooch. The following end-of-period spreadsheet was prepared for the year ended July 31, 2019:
| Bamboo Consulting | ||||||||
| End-of-Period Spreadsheet | ||||||||
| For the Year Ended July 31, 2019 | ||||||||
| Unadjusted | Adjusted | |||||||
| Adjustments | Trial Balance | |||||||
| Account Title | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | ||
| Cash | 10,940 | 10,940 | ||||||
| 26,050 | 26,050 | |||||||
| Supplies | 2,760 | (a) | 2,320 | 440 | ||||
| Office Equipment | 21,360 | 21,360 | ||||||
| Accumulated |
2,890 | (b) | 1,380 | 4,270 | ||||
| Accounts Payable | 7,030 | 7,030 | ||||||
| Salaries Payable | (c) | 340 | 340 | |||||
| Lisa Gooch, Capital | 26,570 | 26,570 | ||||||
| Lisa Gooch, Drawing | 3,390 | 3,390 | ||||||
| Fees Earned | 49,110 | 49,110 | ||||||
| Salary Expense | 19,020 | (c) | 340 | 19,360 | ||||
| Supplies Expense | (a) | 2,320 | 2,320 | |||||
| Depreciation Expense | (b) | 1,380 | 1,380 | |||||
| Miscellaneous Expense | 2,080 | 2,080 | ||||||
| 85,600 | 85,600 | 4,040 | 4,040 | 87,320 | 87,320 |
Based on the preceding spreadsheet, prepare an income statement for Bamboo Consulting.
| Bamboo Consulting | ||
| Income Statement | ||
| For the Year Ended July 31, 2019 | ||
| $fill in the blank acac5af97041fdf_2 | ||
| Expenses: | ||
| $fill in the blank acac5af97041fdf_4 | ||
| fill in the blank acac5af97041fdf_6 | ||
| fill in the blank acac5af97041fdf_8 | ||
| fill in the blank acac5af97041fdf_10 | ||
| Total expenses | fill in the blank acac5af97041fdf_11 | |
| $fill in the blank acac5af97041fdf_13 |
Based on the preceding spreadsheet, prepare a statement of owner's equity for Bamboo Consulting.
| Bamboo Consulting | ||
| Statement of Owner's Equity | ||
| For the Year Ended July 31, 2019 | ||
| $fill in the blank 6a65f8f69f85ff9_2 | ||
| $fill in the blank 6a65f8f69f85ff9_4 | ||
| fill in the blank 6a65f8f69f85ff9_6 | ||
| fill in the blank 6a65f8f69f85ff9_8 | ||
| $fill in the blank 6a65f8f69f85ff9_10 |
Based on the preceding spreadsheet, prepare a balance sheet for Bamboo Consulting.
| Bamboo Consulting | ||
| Balance Sheet | ||
| July 31, 2019 | ||
| Assets | ||
| Current assets: | ||
| $fill in the blank 4b383508907404c_2 | ||
| fill in the blank 4b383508907404c_4 | ||
| fill in the blank 4b383508907404c_6 | ||
| Total current assets | $fill in the blank 4b383508907404c_7 | |
| Property, plant, and equipment: | ||
| $fill in the blank 4b383508907404c_9 | ||
| fill in the blank 4b383508907404c_11 | ||
| Total property, plant, and equipment | fill in the blank 4b383508907404c_12 | |
| Total assets | $fill in the blank 4b383508907404c_13 | |
| Liabilities | ||
| Current liabilities: | ||
| $fill in the blank 4b383508907404c_15 | ||
| fill in the blank 4b383508907404c_17 | ||
| Total liabilities | $fill in the blank 4b383508907404c_18 | |
| Owner's Equity | ||
| fill in the blank 4b383508907404c_20 | ||
| Total liabilities and owner's equity | $fill in the blank 4b383508907404c_21 |
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