[The following information applies to the questions displayed below.] The following is a list of accounts and adjusted amounts for Rollcom, Incorporated, for the fiscal year ended September 30, 2021. The accounts have normal debit or credit balances. Accounts Payable Accounts Receivable Accumulated Depreciation Cash Common Stock Equipment Income Tax Expense Notes Payable (long-term) Office Expense Rent Expense Retained Earnings Salaries and Wages Expense Sales Revenue Supplies $ 39,100 66,500 21,500 80,300 94,800 90,700 10,500 1,500 6,300 164, 200 99,900 128,700 325,600 35,200 . Prepare the closing entry required at September 30, 2021. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
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.
![[The following information applies to the questions displayed below.]
The following is a list of accounts and adjusted amounts for Rollcom, Incorporated, for the fiscal year ended September
30, 2021. The accounts have normal debit or credit balances.
Accounts Payable
Accounts Receivable
Accumulated Depreciation
Cash
Common Stock
Equipment
Income Tax Expense
Notes Payable (long-term)
Office Expense
Rent Expense
Retained Earnings
Salaries and Wages Expense
Sales Revenue
Supplies
$ 39,100
66,500
21,500
80,300
94,800
90,700
10,500
1,500
6,300
164,200
99,900
128,700
325,600
35, 200
2. Prepare the closing entry required at September 30, 2021. (If no entry is required for a transaction/event, select "No Journal Entry
Required" in the first account field.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F601d2812-6e27-4ba1-b94e-fdfde12574b5%2Fe2ed7ebd-dc6f-4b1e-bef9-39e8a4a72da8%2Fs3zg5bw_processed.png&w=3840&q=75)
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