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, 20Y5: Bamboo Consulting End-of-Period Spreadsheet For the Year Ended July 31, 20Y5 Unadjusted Adjusted Trial Balance Adjustments Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 8,030 8,030 Accounts Receivable 19,120 19,120 Supplies 2,030 (a) 1,700 330 Office Equipment 15,490 15,490 Accumulated Depreciation 2,120 (b) 1,010 3,130 Accounts Payable 5,160 5,160 Salaries Payable (c) 250 250 Lisa Gooch, Capital 19,500 19,500 Lisa Gooch, Drawing 2,490 2,490 Fees Earned 36,060 36,060 Salary Expense 14,150 (c) 250 14,400 Supplies Expense (a) 1,700 1,700 Depreciation Expense (b) 1,010 1,010 Miscellaneous Expense 1,530 1,530 62,840 62,840 2,960 2,960 64,100 64,100 Question Content Area Based on the preceding spreadsheet, prepare an income statement for Bamboo Consulting. Bamboo ConsultingIncome StatementFor the Year Ended July 31, 20Y5 $- Select - Expenses: $- Select - - Select - - Select - - Select - Total expenses fill in the blank 42fcdefebfa7faa_11 $- Select - Question Content Area Based on the preceding spreadsheet, prepare a statement of owner's equity for Bamboo Consulting. Bamboo ConsultingStatement of Owner's EquityFor the Year Ended July 31, 20Y5 $- Select - $- Select - - Select - - Select - $- Select - Question Content Area Based on the preceding spreadsheet, prepare a balance sheet for Bamboo Consulting. Bamboo ConsultingJuly 31, 20Y5 Assets Current assets: $- Select - - Select - - Select - Total current assets $fill in the blank b305adf45fa0079_7 Property, plant, and equipment: $- Select - - Select - Total property, plant, and equipment fill in the blank b305adf45fa0079_12 Total assets $fill in the blank b305adf45fa0079_13 Liabilities Current liabilities: $- Select - - Select - Total liabilities $fill in the blank b305adf45fa0079_18 Owner's Equity - Select - Total liabilities and owner's equity $fill in the blank b305adf45fa0079_21
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.
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, 20Y5:
| Bamboo Consulting | ||||||||
| End-of-Period Spreadsheet | ||||||||
| For the Year Ended July 31, 20Y5 | ||||||||
| Unadjusted | Adjusted | |||||||
| Adjustments | Trial Balance | |||||||
| Account Title | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | ||
| Cash | 8,030 | 8,030 | ||||||
| 19,120 | 19,120 | |||||||
| Supplies | 2,030 | (a) 1,700 | 330 | |||||
| Office Equipment | 15,490 | 15,490 | ||||||
| Accumulated |
2,120 | (b) 1,010 | 3,130 | |||||
| Accounts Payable | 5,160 | 5,160 | ||||||
| Salaries Payable | (c) 250 | 250 | ||||||
| Lisa Gooch, Capital | 19,500 | 19,500 | ||||||
| Lisa Gooch, Drawing | 2,490 | 2,490 | ||||||
| Fees Earned | 36,060 | 36,060 | ||||||
| Salary Expense | 14,150 | (c) 250 | 14,400 | |||||
| Supplies Expense | (a) 1,700 | 1,700 | ||||||
| Depreciation Expense | (b) 1,010 | 1,010 | ||||||
| Miscellaneous Expense | 1,530 | 1,530 | ||||||
| 62,840 | 62,840 | 2,960 | 2,960 | 64,100 | 64,100 |
Question Content Area
Based on the preceding spreadsheet, prepare an income statement for Bamboo Consulting.
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$- Select - | |
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- Select - | |
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- Select - | |
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| Total expenses | fill in the blank 42fcdefebfa7faa_11 | |
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$- Select - |
Question Content Area
Based on the preceding spreadsheet, prepare a statement of owner's equity for Bamboo Consulting.
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$- Select - | |
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$- Select - | |
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- Select - | |
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- Select - | |
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$- Select - |
Question Content Area
Based on the preceding spreadsheet, prepare a balance sheet for Bamboo Consulting.
| Assets | ||
| Current assets: | ||
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$- Select - | |
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- Select - | |
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- Select - | |
| Total current assets | $fill in the blank b305adf45fa0079_7 | |
| Property, plant, and equipment: | ||
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$- Select - | |
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- Select - | |
| Total property, plant, and equipment | fill in the blank b305adf45fa0079_12 | |
| Total assets | $fill in the blank b305adf45fa0079_13 | |
| Liabilities | ||
| Current liabilities: | ||
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$- Select - | |
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- Select - | |
| Total liabilities | $fill in the blank b305adf45fa0079_18 | |
| Owner's Equity | ||
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- Select - | |
| Total liabilities and owner's equity | $fill in the blank b305adf45fa0079_21 |
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