Project Goal

The goal of this graded project is to create the following financial statements for J & L Accounting,

Inc.:

Balance sheet

Income statement

Statement of retained earnings

Post$-$closing trial balance

The financial statements must be created in one Microsoft Word document $(.$doc or $.$docx file$).$

Alternatively, an Excel workbook may be used $(.$xls or $.$xlsx file$).$ The Word or Excel file will be

uploaded for grading.

Instructions

Read the following instructions thoroughly before beginning your work to get familiar with the

project. Students who start on the project right away, thinking they'll save time, tend to get stuck

and spend more time working through the project than is necessary. The material you need to know

in order to complete the project has been covered in the textbook and the assigned exercises. If you

understand the chapters and completed the assigned homework problems, you should have no

problem with the project.

The project is to be done by hand with a pencil and paper, using the blank forms provided. At the

end of the project are instructions for creating and uploading the financial statements in a Word or

Excel file for grading.

Note: The formatting of financial statements is important. They follow Generally Accepted

Accounting Principles $($GAAP$),$ which creates a uniformity of financial statements for analyzing.

This allows for an easier comparison, as all businesses follow GAAP. The financial statements

should be created exactly as shown or described in the textbook. Incorrect formatting will result in a

loss of points.

Debits equal credits is a fundamental principle of accounting that must not be violated. Debits not

equaling credits allows for "cooking the books," which means presenting false information. It also

allows for embezzlement, which is theft by management or employees. If debits don't equal credits,

the cause may be a lack of understanding of accounting principles or a lack of focus and

concentration when making journal entries, posting to ledger accounts, or completing math.

Remember$-$instructors are available to help you with material you may be struggling with.

Mistakes are best corrected by going back over the work until the error is found. The accounting

equation must balance on the balance sheet. This is another fundamental principle of accounting

that can't be violated. When the equation doesn't balance and the numbers are "fudged," this is

easily detectable by someone who knows accounting. If your debits equal your credits and you

understand which general ledger accounts belong on which financial statements, then the

accounting equation should balance.

The following financial statements are provided from the prior accounting period for J & L

Accounting, Inc.:

a$.$ Post$-$closing trial balance

b$.$ Balance sheet

c$.$ Income statement

d$.$ Statement of retained earningsDo you mind walking me through step by step as to how you came to this solution? thank you.