From the partial worksheets of Mr. Quickie Repair Shop for the quarter ended June 30, 2020, prepare the closing entries and the post-closing trial balance. Mr. QUICKIE REPAIR SHOP Worksheet For the quarter ended June 30, 2020 Adjusted Trial Balance Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Cash on Hand 25,000 62,500 25,000 62,500 Accounts Receivable Estimated Uncollectible Account Notes Receivable Shop Equipment Accumulated Depreciation · Shop Equipment Furniture and Fixture Accumulated Depreciation · Furniture and Fixture 3, 125 3,125 17,500 75,000 17,500 75,000 12,500 12,500 20,000 20,000 14,500 14,500 Accounts Payable Notes Payable Rosas, Capital Rosas, Drawings Repair Income Salaries Expense Rent Expense Supplies Expense Taxes and Lice nses Light and Water Expense Таx Payable Salaries Payable Ihterest Expense hterest Payable Light and Water Payable Supplies on Hand Bad Debt Expense Depreciation Expense hterest Receivable hterest Income 27,500 30,000 111,875 27,500 30,000 111,875 2,500 2,500 75,000 75,000 27,500 20,000 7,500 5,250 8,750 27,500 20,000 7,500 5,250 8,750 1,500 7,500 1,500 7,500 500 500 500 500 1,250 1,250 2,500 1,250 9,500 300 2,500 1,250 9,500 300 300 300 285,550 285,550 80,250 75,300 205,300 210,250 Net Loss 4,950 4,950 80,250 80,250 210,250 210,250 Total
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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
