Use the following information in answering the next item(s): A partial list of the accounts and ending balances taken from the post-closing trial balance of BEBEBOY CORP. on December 31, 2020 is shown as follows: BALANCES P500,000 40,000 50,000 900,000 100,000 75,000 150,000 400,000 300,000 350,000 300,000 150,000 190,000 200,000 50,000 80,000 270,000 100,000 90,000 250,000 100,000 400,000 180,000 50,000 ACCOUNTS Retained Earnings - unappropriated Subscription Receivable - Preference Shares (short-term) Premium on Bonds Payable Ordinary Share Capital (no par value with P10 stated value) Cash Dividends Payable Reserve for Contingencies Ordinary Shares Dividends Payable Ordinary Shares Subscribed Additional Paid-in Capital - Ordinary Shares Long-term Investment in Equity Securities Preference Share Capital (P6 par value) Additional Paid-in Capital - Preference Shares Preference Shares Subscribed Redeemable Preference Shares Gain on Sale of Ordinary Treasury Shares Donated Capital Property Dividends Payable Treasury Shares* Ordinary Share Warrants Outstanding Bonds Payable Reserve for Depreciation Reserve for bond sinking fund Revaluation Increment Subscription Receivable - Ordinary Shares (long-term) Unrealized gain on available for sale securities Additional Information: Treasury shares are measured at P25 per share, the fair value at the date of acquisition. Such shares were acquired at P15 per share. Appropriations for treasury shares were yet to be made as of year-end. 120,000
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.
How much is the
2. How much is the total legal capital of BEBEBOY?
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