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Posted on Jun 15, 2024

7. Prepare the income statement, retained earnings statement and balance sheet at and for the month of January Answer the questions in the tab labeled

7. Prepare the income statement, retained earnings statement and balance sheet at and for the month of January

Answer the questions in the tab labeled financial statement analysis

QUESTIONS

How do you feel this company performed in its first month? Support your reasons.

Provide 3 financial statement ratios based on the information provided in the financial statements to support your conclusion in part 1.

Provide 4 recommendations for the owner to ensure the business becomes more profitable and an eventual success?

Excel File Edit View Insert Format Tools Data Window Help ONE 4 Sun 5:58 PM Q DE AutoSave O OFF . 5 = Classroom Accounting Cycle Exercise - Version 3 (2) Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Open recovered workbooks? Your recent changes were saved. Do you want to continue working where you left off? Yes No B35 4 X V fx Are there any other accounts that need adjusting?! C D E F G H K M VOUT AWN 1-Jan Nighthawk Services was incorporated in the state of VA. The company will provide management consulting services to business and governmental clients. 2-Jan Tom M. contributed $275,000 of personal funds to the business in exchange for shares of common stock 3-Jan Nighthawk Services signed a contract to provide consulting services for $100,000 to ABC client. 4-Jan Nighthawk Services received $100,000 from ABC for work to be performed half in January and half in February. 5-Jan Nighthawk Services bought $600 of office supplies on account 6-Jan Nighthawk Services bought $50,000 of office equipment using cash 6 00 7-Jan Nighthawk Services hired 2 consultants 8-Jan Nighthawk Services purchased a 12 month insurance contract for $12,000 9-Jan Nighthawk Services paid $1750 cash for rental of office space for January 10 10-Jan Nighthawk Services paid $910 on account for advertising during January. 11 11-Jan Nighthawk Services was paid $10,750 from Fed Corp to perform services during January 12 12-Jan Nighthawk Services purchased $450 of supplies using cash Nighthawk Services signed a contract to provide consulting services for $54,000 to DMV client. Services to be provided equally over the next 12 months. Client will be 13 13-Jan billed at end of each month. 14 14-Jan Nighthawk Services pays employees $3,000 in salaries 15 15-Jan Nighthawk Services borrowed $450,000 on a 5% note payable. 16 16-Jan Nighthawk Services purchased Land for $300,000 cash with plans to build an office building within the next year. 17 17-Jan Nighthawk Services paid $2000 cash for repairs and maintenace to equipment 18 20-Jan Nighthawk Services loans $24,000 to G Corp on a 10% (interest) note receivable 19 21-Jan Nighthawk Services pays employees $3,000 in salaries 20 22-Jan Nighthawk Services gets paid $12,850 for services performed to Vector Corp 21 23-Jan Nighthawk Services purchases $150,000 in stock investments 22 24-Jan Nighthawk Services gets a $5375 bill for utilities used in January 23 25-Jan Nighthawk Services pays $1750 in office rent for month of February 24 26-Jan Nighthawk Services pays $70,000 in dividends 25 27-Jan Nighthawk Services pays $400 cash to attend an event to promote business at a convention in January 26 28-Jan Nighthawk Services pays $490 cash for taxes 27 29-Jan Nighthawk Services pays employees $3,000 in salaries 28 30-Jan Nighthawk Services paid for $700 office supplies previously purchased on account 29 31-Jan Nighthawk Services has to prepare financial statements for the owner and the bank from which the funds were borrowed. 30 January Month End Adjustments 31 31-Jan Nighthawk Services calculated $550 in depreciation 32 31-Jan Nighthawk Services owes January interest on the loan 33 31-Jan Nighthawk Services counted $500 in remaining supplies (on hand supplies) 34 31-Jan Nighthawk Services owes employees $1,500 in salaries for work performed in January 35 Are there any other accounts that need adjusting?! 36 Transactions Journal Entries Ledger Balances Trial Balance Adjusting Entries Adjusted Ledger Balances Adjusted Trial Balance Financial Statements Financial Statement Analysis + + 100% 62,766 43 ... 25 wN Stud Macs Virgil N Zoon (Fall was Virgil HOM ]https|@ Revic P Logir Cour Pern * 1446 Cour * 1446 * 1 X 1446 * 1446 * 1445 * 1445 1445 + C coursehero.com/qa/attachment/14464081/?_chid=5788480c-9d31-4f2b-a199-e6feb5bbc29 Noticias Super Max Close www.youtube.com Falsa Identidad 2 La Muerte... Settings UNADJUSTED TRIAL BALANCE ADJUSTING ENTRIES ADJUSTED TRIAL BALANCE Debit Credit Debit Credit Debit Credit Cash 250,060.00 250,060.00 Accounts receivable 30,000.00 30,000.00 Office supplies 1,050.00 550.00 500.00 Prepaid insurance 12,000.00 12,000.00 Prepaid rent 1,750.00 1,750.00 Notes receivable 24,000.00 24,000.00 Office equipment 50,000.00 50,000.00 Accumulated depreciation 550.00 550.00 Investment in stocks 150,000.00 50.000.00 Land 300,000.00 300,000.00 Accounts payable 6,185.00 6,185.00 Salaries payable 1,500.00 1,500.00 Notes payable 450,000.00 450,000.00 Interest payable 1,875.00 1,875.00 Unearned revenue 164,750.00 ,750.00 Common stock 275,000.00 275,000.00 Retained earnings 70,000.00 70,000.00 Revenue 12,850.00 12,850.00 Salaries expense 9,000.00 1,500.00 10,500.00 Utilities expense 5.375.00 5,375.00 Repairs and maintenance 2,000.00 2,000.00 Interest expense 1,875.00 1,875.00 Rent expense 1,750.00 1,750.00 Advertising expense 1,310.00 ,310.00 Supplies expense 550.00 550.00 Depreciation expense 550.00 550.00 Taxes expense 490.00 490.00 908,785.00 908,785.00 4,475.00 4,475.00 912,710.00 912,710.00N Stud Mrs Virgil N Chap (Fall Mrs Virgil HOM ] https|@ Revic P Logir Cour Pern * 1446 Cour * 1446 1446 1446 * 1 X 1445 1445 * 1445 + Noticias Super Max Close C coursehero.com/qa/attachment/14463918/?_chid=542d8a55-05cb-4eb5-8c94-f2e589317e94 www.youtube.com Falsa Identidad 2 La Muerte... Settings GENERAL JOURNAL ENTRIES: 1-Jan No entry 16-Jan Land 300,000.00 2-Jan Cash 275,000.00 Cash 300,000.00 Common stock 275,000.00 17-Jan Repairs and maintenance 2,000.00 3-Jan No entry Cash 2,000.00 4-Jan Cash 100,000.00 20-Jan Notes receivable 24,000.00 Unearned revenue 100,000.00 Accounts receivable 24,000.00 5-Jan Office supplies 600.00 21-Jan Salaries expense 3,000.00 Accounts payable 600.00 Cash 3,000.00 6-Jan Office equipment 50,000.00 22-Jan Cash 12,850.00 Cash 50,000.00 Revenue 12,850.00 7-Jan No entry 23-Jan Investment in stocks 150,000.00 8-Jan Prepaid insurance 12,000.00 Cash 150,000.00 Cash 12,000.00 24-Jan Utilities expense 5,375.00 9-Jan Rent expense 1,750.00 Accounts payable 6,375.00 Cash 1,750.00 25-Jan Prepaid rent 1,750.00 10-Jan Advertising expense 910.00 Cash 1,750.00 Accounts payable 910.00 26-Jan Retained earnings 70.000.00 11-Jan Cast 10,750.00 Cash 70,000.00 Unearned revenue 10,750.00 27-Jan Advertising expense 400.00 12-Jan Supplies 450.00 Cash 400.00 Cash 450.00 28-Jan Taxes expense 490.00 13-Jan Accounts receivable 54,000.00 Cash 490.00 Unearned revenue 54,000.00 29-Jan Salaries expense 3,000.00 14-Jan Salaries expense 3,000.00 Cash 3,000.00 Cash 3,000.00 30-Jan Accounts payable 700.00 15-Jan Cash 450,000.00 Cash 700.00 Notes payable 450,000.00