Business Finance
Accounting Assignment

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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 $ 4,600Notes payable $12,000 Accounts receivable 4,000Accounts payable 500 Service revenue 7,500Supplies expense 1,000 Supplies 2,400Maintenance and repairs expense 600 Advertising expense 400Utilities expense 300 Equipment 26,000Salaries and wages expense 1,400 Common stock 22,100 In June, the company issues no additional stock but paid dividends of $1,400. Use and complete the Excel template in Student Materials for the following: (a) Prepare an income statement and a retained earnings statement for the month of June and a balance sheet at June 30, 2017. (b) Briefly discuss whether the company's first month of operations was a success.(at least one paragraph) (c) Discuss the company's decision to distribute a dividend. (at least one paragraph) Note: There are separate worksheet tabs in the Excel template for the items above. Click the Assignment Files tab to submit your completed Excel spreadsheet. ACC 290 WEEK 1 ASSIGNMENT ELITE SERVICE CO. STUDENT NAME: 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 and 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 Notes payable Accounts payable Supplies expense Maintenance and repairs expense Utilities expense Salaries and wages expense 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 sheet 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 "?" . (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 Add: Net income Less: Dividends Retained earnings, June 30 ? ? Value Value ? Value ? ELITE SERVICE CO. Balance Sheet June 30, 2017 Assets Cash Accounts receivable Supplies Equipment Total assets Liabilities and Stockholders' Equity Liabilities Accounts payable Value Notes payable Value Total liabilities Stockholders' equity Common stock Value Retained earnings Value Total liabilities and stockholders' equity Value Value Value Value ? ? ? ? $12,000 500 1,000 600 300 1,400 (b) Briefly discuss whether the company's first month of operations was a success. WRITE YOUR RESPONSE HERE: (c ) Discuss the company's decision to distribute a dividend. WRITE YOUR RESPONSE HERE: ...
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ACC 290 WEEK 1 ASSIGNMENT
ELITE SERVICE CO.
STUDENT NAME:

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 and
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

Notes payable
Accounts payable
Supplies expense
Maintenance and repairs expense
Utilities expense
Salaries and wages ex...

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