Assignment 1: Preparing and Analyzing Financial Statements Carefully read and complete the following questions. In addition to the marks indicated, you will also be graded on format and presentation (5 marks), grammar and spelling (5 marks). This assignment is worth a total of 75 marks and is 10% of your overall grade. A. Preparing Financial Statements (Total marks: 35) The following amounts summarize the financial position of The Pink Company on June 30, 2020: Assets Liabilities + Stockholder's Equity Cash + + + Accounts + Receivable Supplies & Land 13,000 Accounts Payable Common Shares Retained Earnings 3,200 $1,500 1,200 8,500 4.000 During July 2020, the business completed these transactions: a. Completed services for a client and received cash of $7,900. b. Paid $4,000 on accounts payable. c. Received cash infusion of $5,000 and issued common shares. d. Purchased supplies on account, $1,500. e. Collected cash from a customer on account, $1,200. f. Consulted on the design of a business report, and billed the client for services rendered, $3,650. g. Recorded the following business expenses for the month: paid office rent, $900; paid advertising, $200. h. Declared and paid a cash dividend of $2,100. i. Paid wages for employees, $700. j. Purchased a used delivery van with a down payment of $500 and 8 equal monthly installments of $750. Requirements: 1. Apply the basic accounting equation to complete a transaction analysis for each transaction above. (Hint: Use the format and accounts provided above, add a separate line item for each transaction). 2. Prepare the income statement of The Adams Company for the month ended July 2020. List expenses in decreasing order by amount. 3. Prepare the entity's statement of retained earnings for the month ended July 2020. 4. Prepare the balance sheet of The Adams Company at July 2020. B. Analyzing Financial Statements (Total marks: 30) Net Sales, net income, and total asset for JRiz Publishing Co. for a five-year period are as follows: (In thousands) 2020 Net Sales 2019 2018 2017 2016 $700 $618 $345 $329 $359 58 Net Income 57 41 44 37 Total Assets 300 262 253 223 201 Assignment 1: Preparing and Analyzing Financial Statements Carefully read and complete the following questions. In addition to the marks indicated, you will also be graded on format and presentation (5 marks), grammar and spelling (5 marks). This assignment is worth a total of 75 marks and is 10% of your overall grade. A. Preparing Financial Statements (Total marks: 35) The following amounts summarize the financial position of The Pink Company on June 30, 2020: Assets Liabilities + Stockholder's Equity Cash + + + Accounts + Receivable Supplies & Land 13,000 Accounts Payable Common Shares Retained Earnings 3,200 $1,500 1,200 8,500 4.000 During July 2020, the business completed these transactions: a. Completed services for a client and received cash of $7,900. b. Paid $4,000 on accounts payable. c. Received cash infusion of $5,000 and issued common shares. d. Purchased supplies on account, $1,500. e. Collected cash from a customer on account, $1,200. f. Consulted on the design of a business report, and billed the client for services rendered, $3,650. g. Recorded the following business expenses for the month: paid office rent, $900; paid advertising, $200. h. Declared and paid a cash dividend of $2,100. i. Paid wages for employees, $700. j. Purchased a used delivery van with a down payment of $500 and 8 equal monthly installments of $750. Requirements: 1. Apply the basic accounting equation to complete a transaction analysis for each transaction above. (Hint: Use the format and accounts provided above, add a separate line item for each transaction). 2. Prepare the income statement of The Adams Company for the month ended July 2020. List expenses in decreasing order by amount. 3. Prepare the entity's statement of retained earnings for the month ended July 2020. 4. Prepare the balance sheet of The Adams Company at July 2020. B. Analyzing Financial Statements (Total marks: 30) Net Sales, net income, and total asset for JRiz Publishing Co. for a five-year period are as follows: (In thousands) 2020 Net Sales 2019 2018 2017 2016 $700 $618 $345 $329 $359 58 Net Income 57 41 44 37 Total Assets 300 262 253 223 201