Professional Documents
Culture Documents
20,000
15,000
2,000
420,000
30,000
2,000
5,000
24,000
15,000
2,000
1
2
6
7
17
Statement of Cashflow (Direct Method)
Cashflows from Operating Activities
Cash paid for prepaid rent expense - 40,000
Cash paid for rent expense - 20,000
Cash paid for accrued salaries - 10,000
Cash paid for loan interest expense - 2,000
Cash received from service rendered 300,000
Cash paid for tax expense on government - 5,000
Cash lost from theft - 15,000 208,000
Cashflows from Investing Activities
Cash received from sale of equipment 370,000
Cash paid for acquisition of equipment - 250,000
Cash paid from machine purchased on account - 150,000 - 30,000
Cashflows from Financing Activities
Cash received from investmest of the owner 500,000
Cash received from loans borrowed 400,000
Cash paid for repayments of loan - 20,000
Cash paid on drawings by owner - 10,000
Cash paid on drawings by owner - 20,000 850,000
Net Increase in Cash ###
Cash, Beginning -
Cash, Ending ###
Statement of Cashflow (Indirect Method)
Cashflows from Operating Activities
Net Profit 309,000
Loss on Sale of Equipment 30,000
Decrease in Supplies 24,000
Increase in Accounts Receivables - 60,000
Increase in Prepaid Rent Expense - 40,000
Increase in Note Receivables - 40,000
Increase in Accrued Interest Income - 2,000
Increase in Accrued Salaries Expense 5,000 226,000
Cashflows from Investing Activities
Proceeds from sale of equipment 370,000
Acquisition of equipment - 250,000
Payments on machine purchased on account - 150,000 - 30,000
Cashflows from Financing Activities
Owner's Investment 502,000
Loan Borrowings 400,000
Loan Repayment - 20,000
Owner's Drawings - 50,000 832,000
Net increase in Cash 1,028,000
Cash, Beginning -
Cash, Ending 1,028,000
Trial Balance Income Statement Changes in Equity
Debit Credit Debit Credit Debit Credit
Cash 1,028,000
Equipment 250,000
Supplies 76,000
Machinery 200,000
Prepaid Rent Expense 40,000
Accounts Receivable 60,000
Notes Receivable 40,000
Accrued Interest Income 2,000
Loans Payable 380,000
Accounts Payable 50,000
Accrued Salaries Expense 5,000
Drawings 50,000 50,000
Capital 1,002,000 1,002,000
Service Income 420,000 420,000
Interest Income 2,000 2,000
Rent Expense 20,000 20,000
Salaries Expense 15,000 15,000
Interest Expense 2,000 2,000
Loss 45,000 45,000
Tax Expense 5,000 5,000
Supplies Expense 24,000 24,000
Utilities Expense 2,000 2,000
### ###
Net Income 309,000 309,000
422,000 ### 50,000 1,311,000
Ending Capital ###
### ###
Balance Sheet Post-Closing Trial Balance
Debit Credit Debit Credit
1,028,000 1,028,000
250,000 250,000
76,000 76,000
200,000 200,000
40,000 40,000
60,000 60,000
40,000 40,000
2,000 2,000
380,000 380,000
50,000 50,000
5,000 5,000
1,261,000
###
### ### 1,696,000 1,696,000