Required information [The following information applies to the questions displayed below.] The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2023. Account Title Cash Accounts receivable Inventory Equipment Accumulated depreciation Accounts payable Accrued liabilities Common stock Retained earnings Sales revenue Cost of goods sold Salaries expense Rent expense Advertising expense Debits $ 4,700 Credits 1,700 4,700 10,700 $ 3,200 2,700 0 9,000 6,900 0 Dividends 0 Totals $ 21,800 $ 21,800 The following transactions occurred during January 2024: January 1 Sold inventory for cash, $3,200. The cost of the inventory was $1,700. The company uses the perpetual inventory system. January 2 Purchased equipment on account for $5,200 from the Strong Company. The full amount is due in 15 days. January 4 Received a $200 invoice from the local newspaper requesting payment for an advertisement that Whitlow placed in the paper on January 2. January 8 Sold inventory on account for $4,700. The cost of the inventory was $2,500. January 10 Purchased inventory on account for $9,350. January 13 Purchased equipment for cash, $900. January 16 Paid the entire amount due to the Strong Company. January 18 Received $3,700 from customers on account. January 20 Paid $900 to the owner of the building for January' s rent. January 30 Paid employees $2,700 for salaries for the month of January. January 31 Paid a cash dividend of $900 to shareholders. 4. Prepare an unadjusted trial balance as of January 31, 2024. WHITLOW MANUFACTURING CORPORATION Unadjusted Trial Balance January 31, 2024 Account Title Debits Credits Cash $ 1,700 Accounts receivable Inventory Equipment Accumulated depreciation $ 3,200 Accounts payable Common stock Dividends Retained earnings Sales revenue Cost of goods sold Rent expense Salaries expense Advertising expense Totals $ 1,700 $ 3,200
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 is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2023.
Account Title
Cash.
Accounts receivable
Inventory
Equipment
Accumulated depreciation
Accounts payable
Accrued liabilities.
Common stock
Retained earnings.
Sales revenue
Cost of goods sold.
Salaries expense
Rent expense
Advertising expense.
Dividends
Totals
Debits
$ 4,700
Credits
1,700
4,700
10,700
OOOOO 8
$ 21,800
The following transactions occurred during January 2024:
$ 3,200
2,700
0
9,000
6,900
0
$ 21,800
January 1 Sold inventory for cash, $3,200. The cost of the inventory was $1,700. The company uses the perpetual
inventory system.
January 2 Purchased equipment on account for $5,200 from the Strong Company. The full amount is due in 15 days.
January 4 Received a $200 invoice from the local newspaper request ing payment for an advertisement that Whitlow placed
in the paper on January 2.
January 8 Sold inventory on account for $4,700. The cost of the inventory was $2,500.
January 10 Purchased inventory on account for $9,350.
January 13 Purchased equipment for cash, $900.
January 16 Paid the entire amount due to the Strong Company.
January 18 Received $3,700 from customers on account..
January 20 Paid $900 to the owner of the building for January' s rent.
January 30 Paid employees $2,700 for salaries for the month of January.
January 31 Paid a cash dividend of $900 to shareholders.
4. Prepare an unadjusted trial balance as of January 31, 2024.
WHITLOW MANUFACTURING CORPORATION
Unadjusted Trial Balance
January 31, 2024
Account Title
Debits
Credits
$
1,700
Cash
Accounts receivable
Inventory
Equipment
Accumulated depreciation
Accounts payable
Common stock
Dividends
Retained earnings
Sales revenue
Cost of goods sold
Rent expense
Salaries expense
Advertising expense
Totals
3,200
$
1,700 $
3,200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F37aa963a-c1bd-4046-97af-35d011964a82%2Fc5fabaff-6587-4e74-93fb-9dbfdbf3a055%2F5of0zho_processed.png&w=3840&q=75)
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