journalize, make T account for beginning account balance and transactions, make post closing entries, make trial balance
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.
Hi pls journalize, make T account for beginning account balance and transactions, make
Problem: The beginning balances in ledger of DBM Corporation for September 01, 2018 were as follows;
| Account | Debit | Credit |
| Accounts Payable | 2,160 | |
| 3,070 | ||
| Paid in capital- common stock | 4,990 | |
| Cash | 3,910 | |
| Notes Payable | 600 | |
| Property, plant, and equipment (at cost) | 6,200 | |
| Allowances for doubtful accounts | 540 | |
| Inventories | 1,730 | |
| Accumulated |
2,800 | |
| Prepaid Expenses | 1,250 | |
| Retained earnings | 2,250 | |
| Good will | 1,000 | |
| Estimated tax liability | 750 | |
| Marketable securities | 1,750 | |
| Accrued Expense | 1,000 | |
| Patents and trademarks | 500 | |
| Bonds payable | 2,000 | |
| Investment | 1,500 | |
| Deferred Revenue | 1,000 | |
| Other liabilities-long term | 1,000 | |
| 20,000 | 20,000 |
During the month of September, the following transactions occurred;
1.Owner invested additional cash on common stock, Php 5,000.
2.Purchased inventory on account Php 1,300.
3.Advertising paid in cash Php 150.
4.Paid employees salaries Php 300.
5.Expired insurance, Php 250.
6.Sold goods in cash, Php 2,940 and on credit, Php 2,810.
7.Research and development expense paid in cash, Php 280.
8.Paid certain accounts payable, Php 1,720.
9.Selling, general administrative expenses paid on account, Php 255.
10.Collectedaccounts receivable Php 1,510.
11.Overhead and other expenses paid in cash Php 100.
12.Rent paid in advance Php 250.
13.Received cash for revenue applicable next period Php 650.
14.Increased the current notes payable by Php 200.
15.Sold goods for Php 1,500; returns and allowances, Php 200 and discounts, Php 100
16.Physical Inventory showed ending balance of php 1,750
17.Declared dividends paid Php 1,000
18.Bad debts, Php 45.
19.Depreciation expenses, Php 300
20.Interest earned and bank charges incurred on savings account, Php 100 and Php 50 respectively.
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