Recording Transactions in a Financial Transaction Worksheet Stephanie Calamba is the owner of the Calamba Repairs Specialist. On Jan. 1, 2019, the assets, liabilities and proprietor's capital of the business were: Cash, P25,000; Accounts Receivable, P4,000; Supplies, PS,000; Equipment, P60,000; Accounts Payable, P9,000; Calamba, Capital, P85,000. The transactions for the month of January were as follows: Accounts Accounts Calamba, Capital Cash Receivable Supplies Equipment +] Payable Jan. 1 Balance P25,000 P4,000 PS,000 P60,000 P9,000 +] P85,000 d. f. h. Paid P3,000 of the outstanding accounts payable. Received P1,000 on account (part payment) from customers. Purchased P2,500 worth of supplies on account (on credit). Returned a defective piece of equipment that was purchased last month and received a cash refund of P12,000. Borrowed P10,000 from a supplier, to repay the loan in 30 days. f. Paid creditor P2,000 on account (part payment). Purchased equipment for P10,000, giving P2,000 cash and promising to pay the a. b. C. d. e. 8. balance in 60 days. h. Bought supplies, paying P1,650 cash. Received a P2,500 check from customer on account.
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.
![Recording Transactions in a Financial Transaction Worksheet
Stephanie Calamba is the owner of the Calamba Repairs Specialist. On Jan. 1, 2019, the
assets, liabilities and proprietor's capital of the business were: Cash, P25,000; Accounts
Receivable, P4,000; Supplies, PS,000; Equipment, P60,0003; Accounts Payable, P9,000;
Calamba, Capital, P85,000. The transactions for the month of January were as follows:
Accounts
Receivable
Accounts
Calamba,
Capital
Cash
Supplies
* Equipment
Payable
Jan. 1
Balance
P25,000
P4,000
P60,000
+]
PS,000
P9,000
+]
P85,000
a.
b.
C.
h.
Paid P3,000 of the outstanding accounts payable.
Received P1,000 on account (part payment) from customers.
Purchased P2,500 worth of supplies on account (on credit).
Returned a defective piece of equipment that was purchased last month and
received a cash refund of P12,000.
Borrowed P10,000 from a supplier, to repay the loan in 30 days.
Paid creditor P2,000 on account (part payment).
Purchased equipment for P10,000, giving P2,000 cash and promising to pay the
balance in 60 days.
a.
b.
с.
d.
e.
f.
g.
h. Bought supplies, paying P1,650 cash.
i.
Received a P2,500 check from customer on account.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd5f54beb-8686-4eba-9a77-fd27678721ee%2F5a072230-ddd0-42ce-bd47-0a2891a99ce3%2Fp36c6ls9_processed.jpeg&w=3840&q=75)
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