Business Finance
ACC290 University of Phoenix Elite Services Co Financial Statements Analysis

ACC290

University of Phoenix

Question Description

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.

Use the Excel® spreadsheet to show your work and submit it with your analysis.

Click the Assignment Files tab to submit your assignment.

Faculty Materials


https://phoenix.vitalsource.com/#/books/9781119228...

    Unformatted Attachment Preview

    Preparing an Income Statement, Retained Earnings Statement, and Balance Sheet Grading Guide ACC/290 Version 7 Principles of Accounting I Copyright Copyright © 2017, 2015, 2014, 2013, 2012, 2011 by University of Phoenix. All rights reserved. University of Phoenix® is a registered trademark of Apollo Group, Inc. in the United States and/or other countries. Microsoft®, Windows®, and Windows NT® are registered trademarks of Microsoft Corporation in the United States and/or other countries. All other company and product names are trademarks or registered trademarks of their respective companies. Use of these marks is not intended to imply endorsement, sponsorship, or affiliation. Edited in accordance with University of Phoenix® editorial standards and practices. Preparing an Income Statement, Retained Earnings Statement, and Balance Sheet Grading Guide ACC/290 Version 7 Individual Assignment: 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. Resources Required Financial Accounting: Tools for Business Decision Making. Grading Guide Content Prepared an income statement, retained earnings statement, and balance sheet and analyzed findings using the questions below: • • Briefly whether the company’s first month of operations was a success. Discuss the company’s decision to distribute a dividend. Based income statement and analysis on the following 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: In June, the company issues no additional stock but paid dividends of $1,400. The analysis is 1,050 words in length. Met Partially Met Not Met Comments: 2 Preparing an Income Statement, Retained Earnings Statement, and Balance Sheet Grading Guide ACC/290 Version 7 Content Writing Guidelines Met Met Partially Met Not Met Total Available Total Earned 6 #/6 Partially Met Not Met Total Available Total Earned 3 #/3 9 #/9 The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements. Intellectual property is recognized with in-text citations and a reference page. Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper. Sentences are complete, clear, and concise. Rules of grammar and usage are followed including spelling and punctuation. Assignment Total Additional comments: # Comments: Comments: 3 P1-3A Prepare an income statement, retained earnings statement and balance sheet; discuss results On June 1, 2017, Elite Service Co. was started with an initial investment in the company of $22,100 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2017, and the revenues an expenses for the month of June, its first month of operations: Cash Accounts receivable Service revenue Supplies Advertising expense Equipment Common Stock $4,600 4,000 7,500 2,400 400 26,000 22,100 In June, the company issued no additional stock but paid dividends of $1,400. Instructions (a) Prepare an income statement and retained earnings statement for the month of June and a balance at June 30, 2017. (b) Briefly discuss whether the company's first month of operations was a success. (c ) Discuss the company's decision to distribute a dividend. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with (a) ELITE SERVICE CO. Income Statement For the Month Ended June 30, 2017 Revenues Service revenue Expenses Salaries and wages expense Supplies expense Maintenance and repairs expense Advertising expense Utilities expense Total expenses Net income Value Value Value Value Value Value ELITE SERVICE CO. Retained Earnings Statement For the Month Ended June 30, 2017 Retained earnings, June 1 ? ? Value Add: Net income Value ? Value ? Less: Dividends Retained earnings, June 30 ELITE SERVICE CO. Balance Sheet June 30, 2017 Assets Cash Accounts receivable Supplies Equipment Total assets Value Value Value Value ? Liabilities and Stockholders' Equity Liabilities Accounts payable Notes payable Total liabilities Stockholders' equity Common stock Retained earnings Total liabilities and stockholders' equity Value Value ? Value Value Value ? ent and balance sheet; discuss results vestment in the company of $22,100 cash. ny at June 30, 2017, and the revenues and Notes payable Accounts payable Supplies expense Maintenance and repairs expense Utilities expense Salaries and wages expense nds of $1,400. ement for the month of June and a balance sheet ations was a success. ther a number or a formula in cells with a "?" . $12,000 500 1,000 600 300 1,400 ...
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    Final Answer

    Attached.

    Running head: ELITE SERVICES CO. FINANCIAL STATEMENTS

    Elite Services Co. Financial Statements
    Name
    Institution
    Date
    Instructor

    1

    ANALYZING FINDINGS FROM THE FINANCIAL STATEMENTS

    2

    Introduction
    Financial statements are crucial in every organization as they enable investors
    shareholders, customers, as well as the management to make informed decisions on how to deal
    with the various operational and financial issues in the organization. The income statement
    highlights the company’s financial performance over a given period. It shows how a firm handles
    the expenses and incomes through its operation and those activities that are not part of the work
    and indicates the profitability of the business. The balance sheet shows the company’s own
    assets, liabilities and the capital for the business. Retained earnings statement is an analysis
    which shows how the profits of the firm have been transferred to either the balance sheet as
    retained earnings or to the shareholders as dividends (Cao, Chychyla & Stewart, 2015). This
    paper gives an analysis of Elite Services Company’s income statement, statement of retained
    earnings and balance sheet as of June, 30 2017.
    Income Statement Analysis for Elite Services Company
    It shows a combination of expenses that arise out of business activities and the income
    from and outside of the organization. In this analysis, the month came to an end on 30 June 2017.
    The revenue for the company in that particular month was service revenue. The expenses
    included salaries and wages, supplies, the repairs and maintenance of the machine,
    advertisements and utilities like the electricity and others. The operating profit, which is given by
    revenue minus the cost of goods sold and selling and general administrative expenses amounted
    to $7500, which is a positive value. The bottom-line profit, which is shown by the net income
    amount is given by $3800. This means that the company’s first month of operations was a
    success.

    ANALYZING FINDINGS FROM THE FINANCIAL STAT...

    Missfomen (3153)
    UCLA

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