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    Exercise 5

    Uploaded by

    Nicah Acojon
    1) The document provides instructions for preparing the financial statements - income statement, statement of changes in equity, and balance sheet - for Sakuragi Carpentry Services based on their trial balance. It describes formatting the statements and populating them with amounts from the trial balance. 2) Key steps include formatting the statements, adding headings, populating revenue and expense accounts on the income statement, adding beginning capital and net income to the statement of changes in equity, and pulling asset, liability, and capital accounts from the trial balance to complete the balance sheet. 3) Completed statements should be printed and submitted.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Exercise 5

    Uploaded by

    Nicah Acojon
    45 views3 pages
    1) The document provides instructions for preparing the financial statements - income statement, statement of changes in equity, and balance sheet - for Sakuragi Carpentry Services based on their trial balance. It describes formatting the statements and populating them with amounts from the trial balance. 2) Key steps include formatting the statements, adding headings, populating revenue and expense accounts on the income statement, adding beginning capital and net income to the statement of changes in equity, and pulling asset, liability, and capital accounts from the trial balance to complete the balance sheet. 3) Completed statements should be printed and submitted.

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    Exercise_5

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    1) The document provides instructions for preparing the financial statements - income statement, statement of changes in equity, and balance sheet - for Sakuragi Carpentry Services based on their trial balance. It describes formatting the statements and populating them with amounts from the trial balance. 2) Key steps include formatting the statements, adding headings, populating revenue and expense accounts on the income statement, adding beginning capital and net income to the statement of changes in equity, and pulling asset, liability, and capital accounts from the trial balance to complete the balance sheet. 3) Completed statements should be printed and submitted.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    45 views3 pages

    Exercise 5

    Uploaded by

    Nicah Acojon
    1) The document provides instructions for preparing the financial statements - income statement, statement of changes in equity, and balance sheet - for Sakuragi Carpentry Services based on their trial balance. It describes formatting the statements and populating them with amounts from the trial balance. 2) Key steps include formatting the statements, adding headings, populating revenue and expense accounts on the income statement, adding beginning capital and net income to the statement of changes in equity, and pulling asset, liability, and capital accounts from the trial balance to complete the balance sheet. 3) Completed statements should be printed and submitted.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 3

    Exercise 5

    After journalizing, classifying and summarizing, we now prepare the financial statements of Sakuragi
    Carpentry Services. Start Excel and create Sakuragi Company Services Trial Balance on sheet 1 as shown
    below Figure 2.75). Rename the sheet name from Sheet 1 to Trial Balance Double click on the Sheet 1
    tab and type Trial Balance.

    Then add new sheets and rename each sheet as Balance Sheet, Income Statement and the Statement of
    Changes in Equity.

    For the Income Statement, we do the following instructions.

    1. Click on the Income Statement Sheet. We format the Income Statement. Change the column
    width of A to 4, B to 25, C to 10, D, E and F to 12.
    2. On cell A1, write Sakuragi Carpentry Services. Then merge columns A1 to F1.
    3. On cell A2, write Statement of Comprehensive Income. Then merge columns to A2 to F2.
    4. On cell A3 write For The Month Ended August 31, 20xx. Then merge columns A3 to F3.
    5. On cell A5, write Revenue from Services.
    6. On cell B6, write Carpentry Services.
    7. On cell A8, write Less Operating Income.
    8. On cell B9, write Salaries and Wages.
    9. On cell B10, write Rent Expenses.
    10. On cell B11, write Utilities Expenses.
    11. On cell B12, write Misc. Expenses.
    12. On cell A14, write Net Income.
    13. Then we add the amounts, on cell F6 we add the amount of the revenue from the service. We
    will get the amount from the Trial Balance Tab. Write + <Select Trial Balance> then click on cell
    C15.
    14. Then we add the expenses. On cell D9, write + <Select Trial Balance> then click on cell B16.
    15. On cell D10, write + <Select Trial Balance> then click on cell B17.
    16. On cell D11, write + <Select Trial Balance> then click on cell B18.
    17. On cell D12, write + <Select Trial Balance> then click on cell B19.
    18. After posting the amount of all the expenses, we get the sum of all expenses. To add all the
    expenses, we write on cell F12 =sum(D9:D12). You can also use the Auto Sum Function. Click on
    the <∑> button found in the Home Ribbon and select D9 to D12.
    19. We then deduct the total expenses to the revenue to get the net income. On cell F14, we deduct
    the expenses to the revenue. Write F6-F12.
    20. To finish the Income Statement, we place rule and double rule. So, we place a single line to the
    total expenses, cell D12 and F12, using the border (Bottom Border Line). And then the double
    line to the net income, cell F14, using the border (Bottom Double Border Line).

    For the Statement of Changes in Equity, we do the following steps.

    1. Next, we format the Statement of Changes in Equity. We click on the Statement of Changes Tab.
    Change the column width A to 4, B to 25, C to 10, D, E and F to 12.
    2. On cell A1, write Sakuragi Carpentry Services. Then merge columns A1 to F1.
    3. On cell A2, write Statement of Changes in Equity. Then merge columns A2 to F2.
    4. On cell A3, write For The Month Ended August 31, 20xx. Then merge columns A3 to F3.
    5. On cell A5, write Capital – SCS, Aug 1, 20xx
    6. On cell A6, write Add: Net Income
    7. On cell A8, write Total
    8. On cell A9, write Less: Drawing – SCS
    9. On cell A11, write Capital – SCS, Aug 31, 20xx
    10. Then we add the amounts. On cell F5, we get the amount of the Beginning Capital. Write +
    <Select Trial Balance> then click on cell C3.
    11. Then we add the amount of the net income from the Income Statement. On cell F6, write +
    <Select Income Statement> then click on cell F14. We add a single line to cell F6. (Bottom Border
    Line).
    12. On cell F8, we add the net income to the beginning balance. =F5 + F6.
    13. On cell F9, we add the amount of the Drawing. Write + <Select Trial Balance> then click on cell
    B14. We add a single line to cell F9. (Bottom Border Line).
    14. Next step we deduct the Drawing from the Total Capital to get the Ending Capital. On F11, write
    F8 – F9. To finish the statement, we add a double line to cell F11. (Bottom Double Line).

    For the Balance Sheet, do the following instructions.

    1. Next, we format the balance sheet. Click on the Balance Sheet Tab. Change the column width A
    to 4 B to 25, C to 10, D, E and F to 12.
    2. On cell A1, write Sakuragi Carpentry Services. Then merge columns A1 to F1.
    3. On cell A2, write Statement of Financial Condition. Then merge columns A2 to F2.
    4. On cell A3, write August 31, 20xx. Then merge columns A3 to F3.
    5. On cell A5, write ASSETS. Then merge columns to A5 to F5.
    6. On cell A6, write Current Assets.
    7. On cell B7, write Cash.
    8. On cell B8, write Accounts Receivable.
    9. On cell B9, write Office Supplies.
    10. On cell B10, write Prepaid Insurance.
    11. On cell A12, write Property, Plant and Equipment.
    12. On cell B13, write Equipment.
    13. On cell A15, write Total Assets.
    14. On cell A17, write LIABILTIES AND CAPITAL. Then merge A17 to F17.
    15. On cell A18, write Current Liabilities.
    16. On cell B19, write Accounts Payable.
    17. On cell A21, write Capital.
    18. On cell B22, write Capital – SCS, Aug. 31, 20xx
    19. On cell A24, write Total Liabilities and Capital
    20. Then we add the corresponding amounts to the balance sheet accounts. We will get the
    amounts from the Trial Balance Tab. On cell D7, write + <Select Trial Balance> then click on cell
    B5.
    21. On cell D8, write + <Select Trial Balance> then click on cell B6.
    22. On cell D9, write + <Select Trial Balance> then click on cell B7.
    23. On cell D10, write + <Select Trial Balance> then click on cell B8. We put a single line at the
    bottom of cell D10. Click Border and choose Bottom Border Line.
    24. On cell F10, we add all the amounts of the Current Assets. Write =sum(D7:D10). You can also
    use the Auto Sum Function. Click on the <∑> button found in the Home Ribbon and select cell D7
    to D10.
    25. On cell D13, write + <Select Trial Balance> then click on cell B10. We put a single line at the
    bottom of cell D10. Click Border and choose Bottom Border Line.
    26. We add the Current Assets and Property, Plant and Equipment. On cell F15, write =F10+F13. We
    add a double line to cell F15. (Bottom Double Line).
    27. For the Liabilities, we add the amount to the Accounts Payable. On cell F19, write + <Select Trial
    Balance> then click on cell C12.
    28. For the Capital, we get the amount from the Statement of Changes in Equity. On cell F22, write +
    <Select Statement of Changes in Equity> then click on cell F11. We put a single line at the
    bottom of cell F22. Click Border and choose Bottom Border Line.
    29. We add up the Liabilities and Capital. On cell F24, write =F1+F22. We add a double line to cell
    F24. (Bottom Border Line).
    30. Check that the Total Assets is equal to the Total Liabilities and Capital.
    31. Print your work, Balance Sheet, Statement of Comprehensive Income and Changes in Equity and
    submit for your subject requirement.

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