(Solution) -ACC 290 Week 1 Assignment Preparing an Income Statement Retained Earnings Statement and Balance Sheet Updated
Academic Level: Undergrad. (yrs 3-4)
Paper Format: APA
ACC 290 Week 1 Assignment Preparing an Income Statement Retained Earnings Statement and Balance Sheet NEW
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.
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 1050 words:
• Briefly address whether the company’s first month of operations was a success.
• Discuss the company’s decision to distribute a dividend.
Use the Excel® spreadsheet to show your work and submit it with your analysis.
Click the Assignment Files tab to submit your assignment.