Reference no: EM131602040

Question :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,

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 700 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 under student materials to show your work and submit with your analysis. There are two documents to be submitted (Excel spreadsheet showing the financial statements and analysis on Word document).

The paper--including tables and graphs, headings, title page, and reference page--must be consistent with APA formatting guidelines and meets course-level requirements

Attachment:- assignment accounting.xlsx