1. Create a Statement of Retained Earnings. The software is limited; therefore, you will create

the statement using Excel or Word. You can also use the spreadsheet or word document to type in your ratios, explanations and disclosures (Step 7). There is a disclosure document posted that explains what type of information should be disclosed. (Hint: For this project, there are three things.)

Step 6 Closing Entries and Closing P & L

1. Next, you will type in your closing entries. Remember you are closing revenue and expenses into income summary, dividends into retained earnings and income summary into retained earnings. They will be done in the general journal. When you are finished, you should run another Profit and Loss. Dont forget to change the date to 12/31/22. All your revenue and expenses should be zero. Export to Excel or pdf.

Step 7 Submit Work in Canvas Dropbox and Ratios/Disclosures

Calculate the Working Capital, the Debt Ratio and the Current Ratio. Use these measures of Profitability to discuss the long-term financial viability of this company, be specific with your reasons. You can place those answers on the Statement of Retained Earnings. There is a disclosure document listed in the module that explains what type of information is disclosed.

When finished with the project, submit the following documents to the Quickbooks Project

Dropbox located in Canvas.

Students are required to submit the following information to receive full credit on this project:

1. Profit and Loss exported to Excel or as pdf before your closing entries
2. Balance Sheet exported to Excel or as pdf
3. Statement of Retained Earnings (you need to create it separately in Excel or Word)
4. Journal entriesexported to Excel or as pdf
5. Profit and Loss after closing entries. You should show a balance of 0exported to Excel or pdf
6. Disclosures, ratios and explanation (can be added to the Excel spreadsheet) Remember the disclosure explanation document is listed in the weeks module.

HINTS: Net Income is $8,800 and Total Assets is $66,850