Introduction

[In this section, include the purpose of the report. Describe the kind of information these financial statements provide to various aspects of the business.]

Process

[In this section you will discuss the process you used to generate accurate financial statement results for the business owner from the list of business transactions provided. Explain what is being communicated through each of the financial statements you prepared (income statement, statement of equity, and balance sheet) and how this information will be used in business decision-making and planning.]

Financial Statement Analysis

This section should center on your analysis of the company's financial performance based on the statements you prepared.

1. Discuss key points on your observations of results.
2. Is the company operating profitably (what percent of revenues result in profitet income)?
3. How well poised are they to meet liabilities (discuss liquidity and current ratio)?

Internal Controls

[Provide suggestions for a simple system of internal controls to assist the owners in protecting assets and ensuring accuracy in financial data. Consider additional controls that will support the potential for adding merchandise and additional assets with business growth/expansion.]

Trial Balance As of 03/31/20XX Income Statement For Month ending 3/31/20XX A Company Balance Sheet As of March 31, 20XX A Company Closing Entries Month ending 03/31/20XX \begin{tabular}{|c|l|r|r|} \hline & \multicolumn{1}{|c|}{ Accounts } & & \\ \hline Date & \multicolumn{1}{|c|}{ Debit } & Credit \\ \hline 31Mar & Service Revenue & 6,225.00 & \\ \hline & Income Summary & & 6,225.00 \\ \hline & & & \\ \hline & & 3,000.83 & \\ \hline 31Mar & & & 950.00 \\ \hline & Rent Expense & & 250.00 \\ \hline & Business License Expense & & 45.83 \\ \hline & Depreciation Expense & & 950.00 \\ \hline & Insurance Expense & & \\ \hline & Repairs and Maintenance Expense & & \\ \hline & Advertising Expense & & \\ \hline & Wage Expense & & \\ \hline & Utilities Expense & & \\ \hline & Close Expenses & & \\ \hline & & & \\ \hline 31Mar & Income Summary & & \\ \hline & Owner's Capital & & \\ \hline & & & \\ \hline & & & \\ \hline 31Mar & Owner's Capital & & \\ \hline & Owner's Draw & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Trial Balance As of 03/31/20XX Income Statement For Month ending 3/31/20XX A Company Balance Sheet As of March 31, 20XX A Company Closing Entries Month ending 03/31/20XX \begin{tabular}{|c|l|r|r|} \hline & \multicolumn{1}{|c|}{ Accounts } & & \\ \hline Date & \multicolumn{1}{|c|}{ Debit } & Credit \\ \hline 31Mar & Service Revenue & 6,225.00 & \\ \hline & Income Summary & & 6,225.00 \\ \hline & & & \\ \hline & & 3,000.83 & \\ \hline 31Mar & & & 950.00 \\ \hline & Rent Expense & & 250.00 \\ \hline & Business License Expense & & 45.83 \\ \hline & Depreciation Expense & & 950.00 \\ \hline & Insurance Expense & & \\ \hline & Repairs and Maintenance Expense & & \\ \hline & Advertising Expense & & \\ \hline & Wage Expense & & \\ \hline & Utilities Expense & & \\ \hline & Close Expenses & & \\ \hline & & & \\ \hline 31Mar & Income Summary & & \\ \hline & Owner's Capital & & \\ \hline & & & \\ \hline & & & \\ \hline 31Mar & Owner's Capital & & \\ \hline & Owner's Draw & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular}