ACC290 Phoenix Income Statement & Retained Earnings Statement Assignment Please make sure that you plug in the exact numbers and in APA format the analysis

ACC290 Phoenix Income Statement & Retained Earnings Statement Assignment Please make sure that you plug in the exact numbers and in APA format the analysis, use references as well with conclusion at the end. Please review and answer separately, some of the papers need to have APA format and
citation accordingly, if you have any question send me a message. Also, some of the work is in
Excel spread sheet with the analysis.
I. 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
Accounts receivable 4,000 Accounts payable
$12,000
500
Service revenue
7,500 Supplies expense
Supplies
2,400 Maintenance and repairs expense
Advertising expense
400 Utilities expense
Equipment
26,000 Salaries and wages expense
Common stock
22,100
1,000
600
300
1,400
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.
II. Purpose of Assignment
The purpose of this assignment is to help you become familiar with examining
transactions and how it affects the balance sheet.
Assignment Steps
Resources: Financial Accounting: Tools for Business Decision Making
Write a minimum 150-word response to each of the following scenarios from
Exercise E3-1 in Financial Accounting (p. 132) describing the effect of each
transaction on assets, liabilities, and stockholder’s equity:
•
Selected transactions for Thyme Advertising Company, Inc.
o
Issued common stock to investors in exchange for cash received from
investors.
o
Paid monthly rent.
o
Received cash from customers when service was performed.
o
Billed customers for services performed.
o
Paid dividend to stockholders.
o
Incurred advertising expense on account.
o
Received cash from customers billed in (4).
o
Purchased additional equipment for cash.
o
Purchased equipment on account.
Use the Excel® spreadsheet to record your answers and submit with your
responses.
III. Purpose of Assignment
The purpose of this assignment is to help you become familiar with the parts of the
multiple‐step income statement.
Assignment Steps
Resources: Financial Accounting: Tools for Business Decision Making
Scenario: An inexperienced accountant prepared this condensed income statement
for Simon Company, a retail firm that has been in business for a number of years.
SIMON COMPANY
Income Statement
For the Year Ended December 31, 2017
Revenues
Net sales
$850,000
Other revenues
22,000
872,000
Cost of goods sold
555,000
Gross profit
317,000
Operating expenses
Selling expenses
109,000
Administrative expenses
103,000
212,000
Net earnings
$105,000
As an experienced, knowledgeable accountant, you review the statement and
determine the following facts:
1. Net sales consist of: sales $911,000, less freight-out on merchandise sold
$33,000, and sales returns and allowances $28,000.
2. Other revenues consist of sales discounts $18,000 and rent revenue $4,000.
3. Selling expenses consist of salespersons’ salaries $80,000, depreciation on
equipment $10,000, advertising $13,000, and sales commissions
$6,000. The commissions represent commissions paid. At December 21,
$3,000 of commissions have been earned by salespersons but have not been
paid. All compensation should be recorded as Salaries and Wages Expense.
4. Administrative expenses consist of office salaries $47,000, dividends
$18,000, utilities $12,000, interest expense $2,000, and rent expense
$24,000, which includes prepayments totaling $6,000 for the first quarter of
2018.
Prepare a detailed multi-step income statement with a brief explanation of 700
words. Assume a 25% tax rate.
Show your work on the Excel® spreadsheet and submit with your explanation.
Click the Assignment Files tab to submit your assignment.
IV. Purpose of Assignment
The purpose of this assignment is to evaluate the inventory section of two
companies using basic comparative analysis, and to interpret the data to gain
insight about the company’s inventory management.
Assignment Steps
Resources: Appendices D and E located in Financial Accounting: Tools for
Business Decision Making
Note: While the data are not from the same year, inferences can be drawn
regarding inventory management of the two companies.
Write a 1,050-word comparative analysis using the financial statements of
Amazon.com, Inc. presented in Appendix D, and the financial statements for WalMart Stores, Inc., presented in Appendix E, including the following:
Compute the 2014 values for Amazon.com and the 2015 values for Wal-Mart
based on the information in the financial statements:
Inventory turnover (Use cost of sales and inventories)
Days of inventory
Conclusions concerning the management of the inventory can you draw from this
data.
Show work on Excel® spreadsheet and submit with analysis.
V. Purpose of Assignment
Reconciling bank accounts is a good way to help maintain internal controls over
cash. With time lags and posting errors it is easy for cash transactions to be
omitted, recorded in a different accounting period, or reflect incorrect amounts.
This assignment with give you practical experience in reconciling the cash balance
as noted on the company books to the bank’s records.
Assignment Steps
Resources: Financial Accounting: Tools for Business Decision Making
Scenario: Daisey Company is a very profitable small business. It has not, however
given much consideration to internal control. For example, in an attempt to keep
clerical and office expenses to a minimum, the company has combined the jobs of
cashier and book-keeper. As a result, Bret Turrin handles all cash receipts, keeps
the accounting records, and prepares the monthly bank reconciliations.
The balance per the bank statement on October 31, 2017, was $18,380.
Outstanding checks were No. 62 for $140.75, No. 183 for $180, No. 284 for
$253.25, No. 862 for $190.71, No. 863 for $226.80, and No. 864 for $165.28.
Included with the statement was a credit memorandum of $185 indicating the
collection of a note receivable for Daisey Company by the bank on October 25.
This memorandum has not been recorded by Daisey.
The company’s ledger showed one Cash account with a balance of $21,877.72. The
balance included undepositied cash on hand. Because of the lack of internal
controls, Bret took for personal use all of the undeposited receipts in excess of
$3,795.51. He then prepared the following bank reconciliation in an effort to
conceal his theft of cash:
Cash balance per books, October 31
$21,877.72
Add: Outstanding checks
No. 862
$190.71
No. 863
226.80
No. 864
165.28 482.79
22,360.51
Less: Undeposited receipts
3,795.51
Unadjusted balance per bank, October 31
18,565.00
Less: Bank credit memorandum
185.00
Cash balance per bank statement,
$18,380.00
October 31
Prepare a 1,050-word bank reconciliation report (hint: deduct the amount of the
theft from the adjusted balance per books) including the following:
•
Indicate the three ways that Bret attempted to conceal the theft and the dollar
amount involved in each method.
•
What principles of internal control were violated in this case?
Show all work in the Excel® spreadsheet and submit with the reconciliation report.
Book id from Accounting 1
Financial Accounting: Tools for Business D…
Author: Paul D. Kimmel; Jerry J. Weygandt; Donald E. Kieso
ISBN: 9781119228301
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
$7,500
$1,400
300
400
1,000
600
ELITE SERVICE CO.
Retained Earnings Statement
For the Month Ended June 30, 2017
Retained earnings, June 1
3,700
$3,800
Value
Add: Net income
3,800
?
-1,400
$2,400
Less: Dividends
Retained earnings, June 30
ELITE SERVICE CO.
Balance Sheet
June 30, 2017
Assets
Cash
Accounts receivable
Supplies
Equipment
Total assets
$4,600
4,000
2,400
26,000
$37,000
Liabilities and Stockholders’ Equity
Liabilities
Accounts payable
Notes payable
Total liabilities
Stockholders’ equity
Common stock
Retained earnings
Total liabilities and stockholders’ equity
$500
12,000
12,500
22,100
2,400
24,500
$37,000
Apparently it seems that the first month was success as the company has generted net income.
As the company has earned enough net income and there is no problem of cash flow therefore the
has paid dividend to shareholders, the company has paid around 37% of its dividend.
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
Analyzing the Effect of Transactions
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.
Analyzing the Effect of
Transactions Grading Guide
ACC/290 Version 7
Individual Assignment: Analyzing the Effect of Transactions
Purpose of Assignment
The purpose of this assignment is to help you become familiar with examining transactions and how it affects
the balance sheet.
Resources Required
Financial Accounting: Tools for Business Decision Making
Grading Guide
Content
Met
Partially
Met
Not Met
Total
Available
Total
Earned
6
#/6
Partially
Met
Not Met
Comments:
Wrote a minimum 150-word response
describing the effect of each transaction on
assets, liabilities, and stockholder’s equity.
Answered the following scenarios:
•
•
•
•
•
•
•
•
•
Issued common stock to investors in
exchange for cash received from
investors.
Paid monthly rent.
Received cash from customers when
service was performed.
Billed customers for services
performed.
Paid dividend to stockholders.
Incurred advertising expense on
account.
Received cash from customers billed
in (4).
Purchased additional equipment for
cash.
Purchased equipment on account.
Writing Guidelines
The paper—including tables and graphs,
headings, title page, and reference page—is
consistent with APA formatting guidelines and
Met
Comments:
2
Analyzing the Effect of
Transactions Grading Guide
ACC/290 Version 7
Writing Guidelines
Met
Partially
Met
Not Met
Total
Available
Total
Earned
3
#/3
9
#/9
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:
3
Comparative Analysis Problem:
Amazon.com, Inc. vs. Wal-Mart Stores,
Inc. 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.
Comparative Analysis Problem:
Amazon.com, Inc. vs. Wal-Mart
Stores, Inc. Grading Guide
ACC/290 Version 7
Individual Assignment: Comparative Analysis Problem: Amazon.com, Inc. vs. Wal-Mart
Stores, Inc.
Purpose of Assignment
The purpose of this assignment is to evaluate the inventory section of two companies using basic comparative
analysis, and to interpret the data to gain insight about the company’s inventory management.
Resources Required
Financial Accounting: Tools for Business Decision Making.
Note: While the data are not from the same year, inferences can be drawn regarding inventory management of
the two companies.
Grading Guide
Content
Met
Partially
Met
Not Met
Total
Available
Total
Earned
6
#/6
Partially
Met
Not Met
Comments:
Write a comparative analysis using the
financial statements of Amazon.com, Inc.
presented in Appendix D, and the financial
statements for Wal-Mart Stores, Inc.,
presented in Appendix E.
Included the 2014 values for Amazon based
on the following:
• Inventory turnover (Use cost of
sales and inventories)
• Days of inventory
Included the 2015 values for Walmart based
on the following:
• Inventory turnover (Use cost of
sales and inventories)
• Days of inventory
Included conclusions concerning the
management of the inventory.
The analysis was 1,050 words in length.
Writing Guidelines
Met
Comments:
2
Comparative Analysis Problem:
Amazon.com, Inc. vs. Wal-Mart
Stores, Inc. Grading Guide
ACC/290 Version 7
Writing Guidelines
Met
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:
3
Preparing a Multiple‐Step Income
Statement 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 a correct Multiple‐Step
Income Statement Grading Guide
ACC/290 Version 7
Individual Assignment: Preparing a correct Multiple‐Step Income Statement
Purpose of Assignment
The purpose of this assignment is to help you become familiar with the parts of the multiple‐step income
statement.
Resources Required
Financial Accounting: Tools for Business Decision Making.
Grading Guide
Content
Prepared a correct detailed multi-step income
statement, assuming a 25% tax rate, with a
brief explanation of 700 words.
Based the statement and explanation on the
following scenario:
An inexperienced accountant prepared this
condensed income statement for Simon
Company, a retail firm that has been in
business for a number of years.
Determined the following: Net sales consist of
sales $911,000, less freight-out on
merchandise sold $33,000, and sales returns
and allowances $28,000.
Determined the following: Other revenues
consist of sales discounts $18,000 and rent
revenue $4,000.
Met
Partially
Met
Not Met
Comments:
2
Preparing a correct Multiple‐Step
Income Statement Grading Guide
ACC/290 Version 7
Content
Met
Partially
Met
Not Met
Total
Available
Total
Earned
5
#/5
Partially
Met
Not Met
Total
Available
Total
Earned
3
#/3
8
#/8
Comments:
Selling expenses consist of salespersons’
salaries $80,000, depreciation on equipment
$10,000, advertising $13,000, and sales
commissions $6,000. The commissions
represent commissions paid. At December
21, $3,000 of commissions have been earned
by salespersons but have not been paid. All
compensation should be recorded as Salaries
and Wages Expense.
Determined the following: Administrative
expenses consist of office salaries $47,000,
dividends $18,000, utilities $12,000, interest
expense $2,000, and rent expense $24,000,
which includes prepayments totaling $6,000
for the first quarter of 2018.
Showed work.
Writing Guidelines
Met
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
#
Comments:
3
Preparing a correct Multiple‐Step
Income Statement Grading Guide
ACC/290 Version 7
Assignment Total
Additional comments:
#
8
#/8
4

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