Financial Statements from the End-of-Period Spreadsheet Triton Consulting is a consulting firm owned and operated by Jayson Neese. The following end-of-period spreadsheet was prepared for the year ended April 30, 20Y3: Triton Consulting End-of-Period Spreadsheet For the Year Ended April 30, 20Y3 Unadjusted Adjusted Trial Balance Adjustments Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 13,220 13,220 Accounts Receivable 31,470 31,470 Supplies 3,340 2,800 540 Office Equipment 25,490 25,490 Accumulated Depreciation 3,490 1,670 5,160 Accounts Payable 8,500 8,500 Salaries Payable 410 410 Common Stock 10,000 10,000 Retained Earnings 22,100 22,100 Dividends 4,090 4,090 Fees Earned 59,960 59,960 Salary Expense 23,920 410 24,330 Supplies Expense 2,800 2,800 Depreciation Expense 1,670 1,670 Miscellaneous Expense 2,520 2,520 104,050 104,050 4,880 4,880 106,130 106,130 Based on the preceding spreadsheet, prepare an income statement for Triton 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.
Financial Statements from the End-of-Period Spreadsheet
Triton Consulting is a consulting firm owned and operated by Jayson Neese. The following end-of-period spreadsheet was prepared for the year ended April 30, 20Y3:
| Triton Consulting | ||||||
| End-of-Period Spreadsheet | ||||||
| For the Year Ended April 30, 20Y3 | ||||||
| Unadjusted | Adjusted | |||||
| Adjustments | Trial Balance | |||||
| Account Title | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. |
| Cash | 13,220 | 13,220 | ||||
| Accounts Receivable | 31,470 | 31,470 | ||||
| Supplies | 3,340 | 2,800 | 540 | |||
| Office Equipment | 25,490 | 25,490 | ||||
| 3,490 | 1,670 | 5,160 | ||||
| Accounts Payable | 8,500 | 8,500 | ||||
| Salaries Payable | 410 | 410 | ||||
| Common Stock | 10,000 | 10,000 | ||||
| 22,100 | 22,100 | |||||
| Dividends | 4,090 | 4,090 | ||||
| Fees Earned | 59,960 | 59,960 | ||||
| Salary Expense | 23,920 | 410 | 24,330 | |||
| Supplies Expense | 2,800 | 2,800 | ||||
| Depreciation Expense | 1,670 | 1,670 | ||||
| Miscellaneous Expense | 2,520 | 2,520 | ||||
| 104,050 | 104,050 | 4,880 | 4,880 | 106,130 | 106,130 |
Based on the preceding spreadsheet, prepare an income statement for Triton Consulting.
| Triton Consulting | ||
| Income Statement | ||
| For the Year Ended April 30, 20Y3 | ||
| Fees earned | $fill in the blank e81d55020fefff7_2 | |
| Expenses: | ||
| Salary expense | $fill in the blank e81d55020fefff7_4 | |
| Supplies expense | fill in the blank e81d55020fefff7_6 | |
| Depreciation expense | fill in the blank e81d55020fefff7_8 | |
| Miscellaneous expense | fill in the blank e81d55020fefff7_10 | |
| Total expenses | fill in the blank e81d55020fefff7_11 | |
| Net income | $fill in the blank e81d55020fefff7_13 |
Revenue and expense accounts flow into the income statement.
Based on the preceding spreadsheet, prepare a statement of stockholders’ equity for Triton Consulting. During the year ended April 30, 20Y3, common stock of $4,000 was issued. If an amount box does not require an entry, leave it blank. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign.
| Triton Consulting | |||
| Statement of Stockholders’ Equity | |||
| For the Year Ended April 30, 20Y3 | |||
| Common Stock | Retained Earnings | Total | |
| Balances, May 1, 20Y2 | $fill in the blank 680781f90fc5f89_2 | $fill in the blank 680781f90fc5f89_3 | $fill in the blank 680781f90fc5f89_4 |
| Issued common stock | fill in the blank 680781f90fc5f89_6 | fill in the blank 680781f90fc5f89_7 | fill in the blank 680781f90fc5f89_8 |
| Net income | fill in the blank 680781f90fc5f89_10 | fill in the blank 680781f90fc5f89_11 | fill in the blank 680781f90fc5f89_12 |
| Dividends | fill in the blank 680781f90fc5f89_14 | fill in the blank 680781f90fc5f89_15 | fill in the blank 680781f90fc5f89_16 |
| Balances, April 30, 20Y3 | $fill in the blank 680781f90fc5f89_18 | $fill in the blank 680781f90fc5f89_19 | $fill in the blank 680781f90fc5f89_20 |
The statement of stockholders' equity shows the beginning balances of common stock and retained earnings. The common stock balance will be increased by any stock issued during the period, and retained earnings will be increased by any net income and decreased by any net losses and dividends.
Based on the preceding spreadsheet, prepare a balance sheet for Triton Consulting.
| Triton Consulting | ||
| Balance Sheet | ||
| April 30, 20Y3 | ||
| Assets | ||
| Current assets: | ||
| Cash | $fill in the blank 145405ff806cfc8_2 | |
| Accounts receivable | fill in the blank 145405ff806cfc8_4 | |
| Supplies | fill in the blank 145405ff806cfc8_6 | |
| Total current assets | $fill in the blank 145405ff806cfc8_7 | |
| Property, plant, and equipment: | ||
| Office equipment | $fill in the blank 145405ff806cfc8_9 | |
| Accumulated depreciation | fill in the blank 145405ff806cfc8_11 | |
| Total property, plant, and equipment | fill in the blank 145405ff806cfc8_12 | |
| Total assets | $fill in the blank 145405ff806cfc8_13 | |
| Liabilities | ||
| Current liabilities: | ||
| Accounts payable | $fill in the blank 145405ff806cfc8_15 | |
| Salaries payable | fill in the blank 145405ff806cfc8_17 | |
| Total liabilities | $fill in the blank 145405ff806cfc8_18 | |
| Stockholders' Equity | ||
| Common stock | fill in the blank 145405ff806cfc8_20 | |
| Retained earnings | fill in the blank 145405ff806cfc8_22 | |
| Total stockholders' equity | fill in the blank 145405ff806cfc8_23 | |
| Total liabilities and stockholders' equity | fill in the blank 145405ff806cfc8_24 |
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