Good day!

I am Marjorie Dipad and for this presentation you wont be seeing me virtually since I will be
using screen record to demonstrate to you how to generate trial balance and financial statements using
the database approach.

First our journal is the accounts with arbitrary among that input. Then to begin the accounting cycle
using database, click on the first cell to insert pivot table.

In the field list, filter books, and put debit and credit for the values. Arrange its format.

For unadjusted trial balance uncheck Adjusting and closing entries.

Copy the table and stimulate the same way but only uncheck closing entries for the adjusted trial
balance and lastly in the post closing trial balance all books or entries are included.

Now, how is it applied on the financial reporting and interrelationship of financial statements

This process in the accounting cycle is the generating trial balance where in this tep, it ensures that
entries from transactions are properly balanced in accordance to the double entry system – for every
debit there is a corresponding equal credit.

Then, after the trial balance we will now proceed in making the financial statements. Statement of
financial position, statement of financial performance and statement of cash flows.

So let me first demonstrate how to generate financial statements using the database approach.

Let’s go back in our jour journal then repeat the step 1.

click on the first cell to insert pivot table.

For the first, financial statement, statement of financial position or the balance sheet.

In the row section, put accounting element, current or non current classification, and the financial
statement account. Again put debit and credit for the values. But in this case we have to insert
calculated field to get the balance “debit - credit. Lastly, arrange its format.

So while doing this, let me explain its interrelationship, as well all know, the the balance sheet would
be done through the use of the normal balance of each account containing the accounting
equation: Assets = Liabilities + Equity or Assets. Thus, it helps an entity to show the financial
status of an entity over a specific period. Financial status means how much has the company
own, owes and the quantity invested.
Next, the statement of financial performance. Repeat the same process but put books in the filter to
exclude closing entries. At the same time, only revenue and expenses would be remain checked.
For the statement of financial performance, this relates in the business operation since it shows the
business performance over the given period. It determines whether the company gain a profit or loss. It
is considered profit when the credited and a loss when the net is debited.

For the last financial statement, the statement of cash flows.

To generate, also follow our step 1.

Put books in filter

Business activities and financial statement accounts in Rows and its balance for the values.

Now, what is the statement of cash flow. This financial statement records the inflows and outflows of
cash in the business. There are three types of business activity, to simply put financing activities are cash
received related to the capital or debt. Operating activities are cash received or paid coming from
business operation. Lastly, the investing activity which the cash received or paid for the sales or
purchase of noncurrent assets or also known as fixed assets.

Overall, these financial statements have an essential impact in evaluating the financial
performance and providing an effective and efficient decision making in the operation of the
business. These statements may also be used to compare a current period in the past to
monitor and analyze the changes.

And that concludes my presentation for today, I do really hope that I successfully discussed how
to generate trial balance and financial statements using the database approach together with
application on financial reporting and interrelationship of financial statements .

Again, I am Marjorie Dipad, your CPA in progess, Thank u and have a good day.
Meanwhile, the business transaction correlates on the business conversion since this
transaction are recorded in a process called journalizing. Then, the balance sheet would be
done through the use of the normal balance of each account containing the accounting
equation: Assets = Liabilities + Equity or Assets = Liabilities + Equity + Revenue – Expenses,
when extended. Note that in the corporation, Stockholder’s Equity is composed of share capital
and retained earnings ( Revenue – Expenses – Dividends).

Once these are inputted, it would proceed to the determination of Profit and Loss. In
the Statement of Financial Position, profit or loss cannot be determined since revenue and
expense accounts are not involved. In contrary, Statement of Performance indicates whether
the business has a net income or loss. It is considered profit when the net is debit in a balance
sheet and credit for income statement while it became a loss when the net is credit in balance
sheet and debit in income statement.

Furthermore, Business Assets Appreciation is the conversion of cash in the form of non-
cash equivalents. The accounting standards now recognized of the fair value of these assets
using appraisal entries. However, it is just realized as unrealized gains and recorded as
revaluation increment. As a result, it is a debit to asset and a credit to capital account. The
increase in capital account is recorded on the comprehensive income statement.

Indeed, these financial statements have an essential impact in evaluating the financial
performance and providing an effective and efficient decision making in the operation of the
business. These statements may also be used to compare a current period in the past to
monitor and analyze the changes.