I have prepared Income Statement, Statement of Stockholders Equity and Balance Sheet of company and need to know if it is correct or not.
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I'm sorry, as an AI text-based assistant, I cannot view or open images. However, I can guide you on how to assess the correctness of financial statements.
To determine if your financial statements are correct, you should follow these steps:
1. Income Statement (or Statement of Profit and Loss):
- Check if revenues and expenses are accurately recorded.
- Verify that all revenue and expense categories are included.
- Ensure that the overall calculation of net income is correct.
2. Statement of Stockholders' Equity (or Statement of Retained Earnings):
- Confirm that the beginning and ending balances of stockholders' equity are accurate.
- Validate any changes in equity, such as issuing new shares or repurchasing existing shares.
- Verify that retained earnings are correctly calculated by adjusting for dividends, net income, and any other relevant factors.
3. Balance Sheet:
- Verify that assets, liabilities, and equity are correctly recorded.
- Ensure that each account balance is accurate.
- Check that the balance sheet balances (Assets = Liabilities + Equity) are correct.
To thoroughly assess the accuracy of your financial statements, it is advisable to perform a detailed review by comparing your statements to supporting documentation, such as bank statements, invoices, payroll records, and tax returns. Additionally, consider seeking professional assistance from an accountant or financial advisor to ensure the accuracy and reliability of your financial statements.