On April 1, 2021, Roland Smith organized a business called Friendly Trucking During April, the company entered into the following transactions Apr 1 Apr 1 Apr 1 Apr 5 Apr 8 Roland Smith deposited Php750,000 cash in a bank account in the name of the business Purchased for Php300.000 a transportation equipment to be use in the business. Roland paid 50% as down payment while the balance will be paid on May 15, 2021 Paid rental for the month of Apni Php 7,000 Eamed and collected trucking income from Roy. Php8,500 Eamed trucking income from Justin, Php 40,000 on account. Justin will pay on May 8, 2021 Paid salaries of drivers, Php12000 Rented the vehicle to Jayanen for Php45.000 Jayzam pard Php25.000 on that date and the balance on April 20 Paid electric bills for the month, Php3 000 Collected from Jayzam the balance of his April 15 account Purchased office supplies Php2,800 Earned and collected trucking income from Jay, Php 18.000 Apr 10 Apr 15 Apr 18 Apr 20 Apr 25 Apr 29 Instructions & Requirements: a Joumalize the above transactions b. Post to ledger using the T-account format c. Prepare the unadjusted tral balance, as of April 30, 2019
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.
On April 1, 2021, Roland Smith organized a business called Friendly Trucking During
April, the company entered into the following transactions
Apr 1
Apr 1
Apr 1
Apr 5
Apr 8
Roland Smith deposited Php750,000 cash in a bank account in the name
of the business
Purchased for Php300.000 a transportation equipment to be use in the
business. Roland paid 50% as down payment while the balance will be
paid on May 15, 2021
Paid rental for the month of Apni Php 7,000
Eamed and collected trucking income from Roy. Php8,500
Eamed trucking income from Justin, Php 40,000 on account. Justin
will pay on May 8, 2021
Paid salaries of drivers, Php12000
Rented the vehicle to Jayanen for Php45.000 Jayzam pard Php25.000
on that date and the balance on April 20
Paid electric bills for the month, Php3 000
Collected from Jayzam the balance of his April 15 account
Purchased office supplies Php2,800
Earned and collected trucking income from Jay, Php 18.000
Apr 10
Apr 15
Apr 18
Apr 20
Apr 25
Apr 29
Instructions & Requirements:
a Joumalize the above transactions
b. Post to ledger using the T-account format
c. Prepare the unadjusted tral balance, as of April 30, 2019
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