Question
Turn the trial balance into properly formatted financial statements -- statement of financial position (balance sheet) and statement of income. Do not try to prepare
Turn the trial balance into properly formatted financial statements -- statement of financial position (balance sheet) and statement of income. Do not try to prepare a cash flow statement or statement of stockholders' equity, you don't have enough information. Refer to early chapters in the textbook for help, the financial statements you submit must be something you'd be proud to show an investor, or a banker, or anyone else. Keep in mind that most companies summarize financial information. Rarely would a company include every account on its financial statements, rather, companies routinely combine similar and related accounts, sometimes with a different title. Again, rely on the earlier chapters in the textbook for guidance. Use your judgment . All of the asset accounts would be too much, but a single item "Total Assets" would provide far too little information, right?
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