Company description

Assume a service company of your own

Give a suitable name to your company,

Describe the nature of service it provides

Date when business was started

Location of business

Owners- names

Capital investment in the business

an Unadjusted Trial Balance of xxx Company for the month or year using proper format.

Trial Balance

Account name

Transactions for making Adjustment entries

Mention required transactions for adjusting entries- transactions that have occurred but no entry was made. Therefore, your company needs to record adjusting entries for these transactions.

Listed below are a number of Adjusting entries that need to be taken into account before preparing the Financial Statements for a service Company:

1. A sale on credit to a customer but not recorded anywhere in the books

2. Supplies at hand and used at the end of year

3. Atleast 2 Prepaid expenses expired

4. Depreciation expense on equipment using straight line method

5. Atleast 2 Accrued expense

6. Portion of Unearned service revenue expired (earned)

7. Interest payable or receivable

Record Adjustment entries

Using proper templates for all the schedules, prepare record the adjusting entries for the transactions selected in the previous section.

Adjusted Trial Balance

an adjusted trial balance to reflect the above adjustments.

Financial statements

Prepare the following financial statements your Company at the end of the month or year:

i. Income statement

ii. Statement of changes in equity

iii. Classified balance sheet

Step 1: INTRODUCTION:

Name of company/Owners names

Location of the company

DESCRIPTION of the business/service- hospitality, hospital, travel agency, gym etc.

Starting date of the business

Capital invested by the owner- cash/equipments/PC

Step 2: a Trial balance (Unadjusted trial balances)- must include all 5 types of Accounts

Can have 1 revenue account

Atleast 3-4 expenses (no need to include depreciation)

2 fixed assets, 3 current assets

Atleast 1 long term liability, 2 current liabilities

Owner capital and drawings

Step 3: Mention the transactions for adjustment entries as given in the project requirement

Step 4: Record the adjusting entries

Step 5: Prepare Adjusted Trial balance (using the Unadjusted Trial balance and adjusted entries)

Step 6: Prepare the 3 financial statements (using Adjusted Trial balance)