Required information [The following information applies to the questions displayed below.] The following adjusted trial balance at December 31 of Wilson Trucking Company. Account Title Debit Credit $ 9,800 19,300 4,800 190,000 Cash Accounts receivable Office supplies Trucks Accumulated depreciation-Trucks Land $ 37,80p 103,000 17,40p 5,800 67,00p 188,000 Accounts payable Interest payable Long-term notes payable K. Wilson, Capital K. Wilson, Withdrawals Trucking revenue Depreciation expense-Trucks Salaries expense Office supplies expense 21,800 148,000 25,300 66,400 9,800 13,800 $ 464,000 $ 464,000 Interest expense Totals
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.
![Required information
[The following information applies to the questions
displayed below.]
The following adjusted trial balance at December 31 of
Wilson Trucking Company.
Account Title
Debit
Credit
$ 9,800
19,300
4,800
190,000
Cash
Accounts receivable
Office supplies
Trucks
Accumulated depreciation-Trucks
$ 37,800
Land
103,000
17,40p
5,800
67,00p
188,000
Accounts payable
Interest payable
Long-term notes payable
K. Wilson, Capital
K. Wilson, Withdrawals
Trucking revenue
Depreciation expense-Trucks
Salaries expense
Office supplies expense
Interest expense
21,800
148,000
25,300
66,400
9,800
13,800
Totals
$ 464,000 $ 464,000
Prepare the closing entries for the year ended December 31.
View transaction list
Journal entry worksheet
1
2
3
4
Prepare the entry to close the revenue account(s).
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Dec 31
Record entry
Clear entry
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Required information
[The following information applies to the questions
displayed below.]
The following adjusted trial balance at December 31 of
Wilson Trucking Company.
Account Title
Debit
Credit
Cash
$ 9,800
Accounts receivable
Office supplies
Trucks
19,300
4,800
190,000
$ 37,800
Accumulated depreciation-Trucks
Land
103,000
17,400
5,800
67,00p
188,000
Accounts payable
Interest payable
Long-term notes payable
K. Wilson, Capital
K. Wilson, Withdrawals
Trucking revenue
Depreciation expense-Trucks
Salaries expense
Office supplies expense
21,800
148,000
25,300
66,400
9,800
13,800
Interest expense
Totals
$ 464,000
$ 464,000
Prepare the closing entries for the year ended December 31.
View transaction list
1 Prepare the entry to close the revenue account(s).
2 Prepare the entry to close the expense account(s).
3 Prepare the entry to close income summary.
4 Prepare the entry to close the Withdrawal account.
Credit
Note :
= journal entry has been entered
Record entry
Clear entry
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