REVENUE JOURNAL Date InvoiceNo. Account Debited Post.Ref. Accounts Rec. Dr.Fees Earned Cr. 20Y3 May 1 112 Hazmat Safety Co. (a) $2,725 May 10 113 Masco Co. (b) 1,020 May 20 114 Alpha GenCorp (c) 1,660 May 27 115 Tillman Inc. (d) 1,835 May 31 $7,240 (e) a. The T account for Accounts Receivable and T accounts for the four accounts needed in the customer ledger are below. b. Post to the T accounts. c. Determine the balance in the accounts. Accounts Receivable May 1 Bal. May 31 Bal. Alpha GenCorp May 31 Bal. Hazmat Safety Co. May 31 Bal. Masco Co. May 31 Bal. Tillman Inc. May 31 Bal. d. Prepare a listing of the accounts receivable customer balances as of May 31, 20Y3. Gamma Services Inc. Accounts Receivable Customer Balances May 31, 20Y3 Alpha GenCorp $ Hazmat Safety Co. Masco Co. Tillman Inc. Total accounts receivable $
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.
| REVENUE JOURNAL | ||||||
Date |
Invoice No. |
Account Debited |
Post. Ref. |
Accounts Rec. Dr. Fees Earned Cr. |
||
| 20Y3 | ||||||
| May 1 | 112 | Hazmat Safety Co. | (a) | $2,725 | ||
| May 10 | 113 | Masco Co. | (b) | 1,020 | ||
| May 20 | 114 | Alpha GenCorp | (c) | 1,660 | ||
| May 27 | 115 | Tillman Inc. | (d) | 1,835 | ||
| May 31 | $7,240 | |||||
| (e) |
a. The T account for Accounts Receivable and T accounts for the four accounts needed in the customer ledger are below.
b. Post to the T accounts.
c. Determine the balance in the accounts.
| Accounts Receivable | |||
|---|---|---|---|
| May 1 Bal. | |||
| May 31 Bal. |
| Alpha GenCorp | |||
|---|---|---|---|
| May 31 Bal. |
| Hazmat Safety Co. | |||
|---|---|---|---|
| May 31 Bal. |
| Masco Co. | |||
|---|---|---|---|
| May 31 Bal. |
| Tillman Inc. | |||
|---|---|---|---|
| May 31 Bal. |
d. Prepare a listing of the accounts receivable customer balances as of May 31, 20Y3.
| Gamma Services Inc. | |
| Accounts Receivable Customer Balances | |
| May 31, 20Y3 | |
| Alpha GenCorp | $ |
| Hazmat Safety Co. | |
| Masco Co. | |
| Tillman Inc. | |
| Total accounts receivable | $ |
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