Question
Fundamentals of Financial Accounting Term April 2022 Final Assignment (30%) Instructor: Lilibeth Montera The final assignment is based on the following information. Yummy-Licious Ice Cream,
Fundamentals of Financial Accounting Term April 2022 Final Assignment (30%) Instructor: Lilibeth Montera The final assignment is based on the following information. Yummy-Licious Ice Cream, Inc. opens its first store in Calgary in January 2021. It sells two types of fresh fruit-based ice cream (regular & special) to Calgarian kids. Below is the unadjusted trial balance of Yummy-Licios Ice Cream, Inc. at the end of the first quarter of its second year of operation (January 1- March 30, 2022). Yummy-Licios Ice Cream Inc. Unadjusted Trial Balance At March 30, 2022 Cash $ 17,000.00 Accounts Receivable $ 600.00 Prepaid Rent $ 7,300.00 Equipment $ 9,700.00 Trademark $ 9,700.00 Accounts Payable $ 10,800.00 Deferred Revenue $ 400.00 Notes Payable (Long-term) $ 20,000.00 Common Stock $ 10,000.00 Retained Earnings, Jan. 1, 2022 $ 1,100.00 Dividends $ 300.00 Sales Revenue $ 11,300.00 Cost of ingredients $ 4,500.00 Salaries and Wages $ 3,200.00 Utilities Expense $ 700.00 Advertising Expenses $ 600.00 TOTAL $ 53,600.00 $ 53,600.00 Required: Based on the unadjusted trial balance of Yummy-Licios Ice Cream, Inc. above, you are required to prepare/write the following: 1) An income statement (8 points); 2) A statement of retained earnings (4 points); 3) Balance Sheet (12 points); 4) A paragraph stating your evaluation of the companys performance and financial status for the quarter ending March 30, 2022. (6 points) In your evaluation, state whether: o the business is profitable; o it is able to pay its current obligations/liabilities; o its assets are financed more by debts or equity; o its retained earnings increased or decreased during the quarter and why. You may state any other insights you have on the companys financial statements. Justify your evaluation and support your discussion with relevant calculations or ratios
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started