Quick and EZ Delivery Income Statement Year Ended December 31, 2018 Revenues: Service Revenue $192,000 Expenses: Salaries Expense $65,000 Rent Expense 9,000 Interest Expense 7,600 Insurance Expense 2,600 Total Expenses Net Income Choose from any list or enter any number in the input fields and then click Check Answer. 2 parts remaining Clear All Final Check Data Table Land $12,000 Common Stock $20,000 Notes Payable 34,000 Accounts Payable 9,000 Property Tax Expense 3,100 Accounts Receivable 1,300 Dividends 35,000 Advertising Expense 10,000 Rent Expense 9,000 Building 139,600 Salaries Expense 65,000 Cash 2,200 Salaries Payable 1,400 Equipment 13,000 Service Revenue 192,000 Insurance Expense 2,600 Office Supplies 13,000 Interest Expense 7,600 Retained Earnings, Dec. 31, 2017 57,000
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.
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Land
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$12,000
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Common Stock
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$20,000
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Notes Payable
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34,000
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Accounts Payable
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9,000
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Property Tax Expense
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3,100
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Accounts Receivable
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1,300
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Dividends
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35,000
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Advertising Expense
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10,000
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Rent Expense
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9,000
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Building
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139,600
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Salaries Expense
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65,000
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Cash
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2,200
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Salaries Payable
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1,400
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Equipment
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13,000
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Service Revenue
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192,000
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Insurance Expense
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2,600
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Office Supplies
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13,000
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Interest Expense
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7,600
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57,000
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