Financial Statements:
Financial statements are the statements prepared for the specific period which comprises the financial information of the organization. It includes a statement of income which shows the profitability of the business, balance sheet which shows the financial position in the terms of assets, liabilities, and capital, and cash flow statement which represents the cash flows for the accounting period.
Income statement:
This is the financial statement of a company which shows all the revenues earned and expenses incurred by the company over a period of time. It is prepared to find out the net income of an organization.
Classified Balance Sheet:
A balance sheet is a statement showing position of all assets, liabilities and equity of the company at a specific time. When assets, liabilities and shareholders’ equity are further sub-categorized to make it more readable and understandable then it is called classified balance sheet
To Prepare: An income statement for the year 2018, and also prepare the balance sheet of Corporation MG.
Want to see the full answer?
Check out a sample textbook solutionChapter 2 Solutions
INTERMEDIATE ACCOUNTING(LL)-W/CONNECT
- Subject : Accounting Santana Rey receives the March bank statement for Business Solutions on April 11, 2022. The March 31 bank statement shows an ending cash balance of $67,766. The general ledger Cash account, Number 101, shows an ending cash balance per books of $68,196 as of March 31 (prior to any reconciliation). A comparison of the bank statement with the general ledger Cash account, Number 101, reveals the following. The bank erroneously cleared a $430 check against the company account in March that S. Rey did not issue. The check was actually issued by Business Systems. On March 25, the bank statement lists a $55 charge for a safety deposit box. Santana has not yet recorded this expense. On March 26, the bank statement lists a $100 charge for printed checks that Business Solutions ordered from the bank. Santana has not yet recorded this expense. On March 31, the bank statement lists $25 interest earned on Business Solutions’s checking account for the month of March. Santana has…arrow_forward1arrow_forwardQUESTION 1 The summary of the bank column in the cash book of APINO Ltd. for the month ended October 31, 2020 is presented to you below; CASH BOOK Bal. b/d 11,000 Total Payments 54,000 Receipts 79,000 Bal. c/d 36,000 90,000 90,000 When the bank statement of the company was received on 31st October 2020, it showed a balance which differed from that of the cash book. Your investigation of the accounting records for the period reveals the following information. Bank charges of GH¢320 appear in the bank statement on 30th October 2020 but have not been recorded in the cash book. Cheques from a customer Papa Kay totaling GH¢2,890 entered in the cash book on 29th October, 2020 were credited by the bank on 2nd November, 2020. A cheque for GH¢ 1,000 entered in the cash book was yet to be submitted for payment by the payee. A cheque for GH¢12, 900 drawn by APINO Ltd. To pay for a new item of plant had been mistakenly entered…arrow_forward
- What is the bank statement balance at June 30, 2023?a. P70,564.40b. P78,314.60c. P83,109.60d.. P87,904.60arrow_forwardQuestion no 4 On Dec 31, 2017, Micro disc Company had a cash balance per books of $6,831.50. The bank statement from Dhaka Bank on that date showed a balance of $6,050.60. A comparison of the statement with the Cash account revealed the following facts. 1. The statement included a debit memo of $40 for the printing of additional company checks. 2. Cash sales of $863.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $836.15. The bank credited Reber Company for the correct amount. 3. Outstanding checks at Dec 31 totaled $472.25. Deposits in transit were $2,7 05.15. 4. On Dec 18, the company issued check No. 1181 for $672 to Lynda Carsen on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Reber Company for $627. 5. A $3,050 note receivable was collected by the bank for Reber Company on May 31 plus $20 interest. The bank charged a collection fee of $80. No interest has been…arrow_forwardPROBLEM 1: You obtained the following information on the current account of BUGOY CORP. During your examination of its financial statements for the year ended December 31, 2021. The bank statement on November 30, 2021 showed a balance of P918,000. Among the bank credits in November was customer's note for P300,000 collected for the account of the company which the company recognized in December among its receipts. Included in the bank debits were cost of checkbooks amounting to P3,600 and a P120,000 check which was charged by the bank in error against Bugoy's account. Also in November you ascertained that there were deposits in transit amounting to P240,000 and outstanding checks totaling P510,000. The bank statement for the month of December showed total credits of P1,248,000 and total charges of P612,000. The Company's books for December showed total debits of P2,206,800, total credits of P1,221,600 and a balance of P1,456,800. Bank debit memos for December were: No. 121 for service…arrow_forward
- Please provide graph answerarrow_forward7arrow_forwardbb 2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker%3&takeAssignmentSessio. Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: 1. Cash balance according to the company's records at July 31 $20,280. 2. Cash balance according to the bank statement at July 31, $21,480. 3. Checks outstanding, $4,120. 4. Deposit in transit, not recorded by bank, $3,310. 5. A check for $270 in payment of an account was erroneously recorded in the check register as $720. 6. Bank debit memo for service charges, $60. a. Prepare a bank reconciliation, using the format shown in Exhibit 14. Mathers Co. Bank Reconciliation July 31 Cash balance according to bank statement Adjusted balance Cash balance according to company's records Adjusted balance Check My Work Previou ASUS VivoBookarrow_forward
- I need help with this questionarrow_forwardProblem 3. The books of Marikit’s Service, Inc. disclosed a cash balance of P687,570 on December31, 2020. The bank statement as of December 31 showed a balance of P547,800. Additionalinformation that might be useful in reconciling the two balances follows:a. Check number 748 for P30,000 was originally recorded on the books as P45,000.b. A customer’s note dated September 25 was discounted on October 12. The note wasdishonored on December 29 (maturity date). The bank charged Marikit’s account forP142,650, including a protest fee of P2,650.c. The deposit of December 24 was recorded on the books as P28,950, but it was actually adeposit of P27,000.d. Outstanding check totaled P98,850 as of December 31.e. There were bank service charges for December of P2,100 not yet recorded on the books.f. Marikit’s account had been charged on December 26 for a customer’s NSF for check forP12,960g. Marikit properly deposited P6,000 on December 3 that was not recorded by the bank.h. Receipts of December 31…arrow_forwardDo not give image formatarrow_forward
- Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning