ACC 290 Week 1 Assignment Help | University Of Phoenix
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- 30 Nov 2019
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ACC 290 Week 1 Assignment Help | University Of Phoenix
Preparing
an Income Statement, Retained Earnings Statement, and Balance Sheet
Purpose of Assignment
The purpose of this assignment is to help students become familiar with the presentation of the income statement and the retained earnings statement, including how parts of the financial statement is evaluated to determine the operational success of the business.
Assignment Steps
Resources: Financial Accounting: Tools for Business Decision Making, p. 36
Scenario: On June 1, 2017, Elite Service Co. was started with an
initial investment in the company of $22,100 cash. Below are the assets,
liabilities, and common stock of the company June 30, 2017, and the revenues
and expenses for the month of June, its first month of operations:
|
Cash |
$ 4,600 |
Notes payable |
$12,000 |
|
Accounts receivable |
4,000 |
Accounts payable |
500 |
|
Service revenue |
7,500 |
Supplies expense |
1,000 |
|
Supplies |
2,400 |
Maintenance and
repairs expense |
600 |
|
Advertising expense |
400 |
Utilities expense |
300 |
|
Equipment |
26,000 |
Salaries and wages
expense |
1,400 |
|
Common stock |
22,100 |
|
|
In June, the company issues no additional stock
but paid dividends of $1,400.
Prepare an income statement, retained earnings statement, and
balance sheet analyzing your findings using the questions below, in a total of
1,050 words:
- Briefly
address whether the company's first month of operations was a success.
- Discuss
the company's decision to distribute a dividend.
Read Ch.
1 of Financial Accounting.
Consider the following as you read:
Every industry has language and processes unique
to its sector, and the business world is no different. Accounting is known as
the language of business, and anyone seeking to understand how business works
must become familiar with accounting. As you go through the lessons in this
chapter consider the following:
- How
does one determine which form of business is most suitable?
- What
is the purpose of accounting information?
USA 
India