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E3-20 Analyzing, Recording, and Evaluating the Effects of Income Statement Transactions MyBnB started a home rental company on January 1. As of November 30 ,

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E3-20 Analyzing, Recording, and Evaluating the Effects of Income Statement Transactions MyBnB started a home rental company on January 1. As of November 30 , MyBnB reported the following balances. The company does not yet have a balance in Retained Earnings because this is its first year of operations so no net income has been reported in prior years. Required: 1. Prepare an unadjusted trial balance, a preliminary income statement, statement of retained earnings, and classified balance sheet as of and for the 11-month period ended November 30 . 2. The owner of MyBnB was hoping the company would generate a net profit margin of at least 10 percent. Based on the financial statements prepared in requirement 1 , determine whether the owner met her goal as of November 30 . 3. Prepare journal entries for the following December transactions. a. Provided rental services at a price of $300 and collected the full amount in cash. b. Paid $70 cash to a cleaning company for December work. c. Paid $60 cash to MyBnB's part-time employee for December wages. d. Paid $100 cash on account for amounts owed from a prior equipment purchase. e. Obtained repair services in December at a cost of $40, to be paid in January. 4. Prepare T-accounts that show the November 30 balances as December 1 beginning balances and then post the journal entries from your answer to requirement 3 to calculate updated December 31 balances. Retained Earnings has a beginning balance of $0. 5. Prepare an unadjusted trial balance, a preliminary income statement, statement of retained earnings, and classified balance sheet as of and for the year ended December 31 . 6. Based on the financial statements prepared in requirement 5 , determine whether the owner met her 10 percent net profit margin goal as of December 31

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