PURPOSE The purpose of this assignment is to enhance learners' understanding on the needs of accounting information users, accounting principles and to prepare the adjusting entry and adjusted trial balance. REQUIREMENT Answer all the questions and show your detailed workings clearly and systematically (IF ANY) Bedah Travel, Inc., began operations on April 1, 2018. During April, the business provided services for customers. It is now April 30 and Starr Bedah, majority shareholder and manager, is trying to determine how well Bedah Travel performed during its first month. Miss Kiah also wants to know the company's financial position at the end of April and its cash flows during the month. Bedah Travel Income Statement for the year ended 2018 $ 10,000 $ 2 Revenue: 3 Service revenue 4 Expenses: 5 Salary expense 6 Rent expense 7 Utilities expense 8 Total expenses 9 Net Income 10 1.200 1,100 400 $ 2.700 7,300 Bedah Travel Statement of Retained Earnings Month Ended April 30, 2018 $ 2 Retained earnings, April 1, 2018 3 Net income for period 4 5 Less dividends declared 6 Retained earnings, April 30, 2018 7 $ 0 7.300 7,300 (2.100) 5,200 $ Balance Sheet April 30, 2018 $ $ 1,800 2 Assets 3 Cash 4 Accounts receivable 5 Supplies 6 Land 7 8 9 Total assets 10 Liabilities 33,300 Accounts payable 2,000 Stockholders' equity 3,700 Common Stock 18,000 Retained earnings Total stockholders' equity Total liabilities and 57,000 stockholders' equity 50,000 5,200 55,200 $ $ 57.000 Statement of Cash Flows Month Ended April 30, 2018 $ 7.300 (3.900) 3,400 2 Cash flows from operating activities: 3 Net income Adjustments to reconcile net income to net cash 4 provided by operating activities 5 Net cash provided by operating activities 6 Cash flows from investing activities: Acquisition of land 8 Sale of land 9 Net cash used for investing activities 10 Cash flows from financing activities: 11 Issuance (sale) of stock 12 Payment of dividends 13 Net cash provided by financing activities 14 Net increase in cash 15 Cash balance, April 1, 2018 16 Cash balance, April 30, 2018 $ (40,000) 22,000 OOO OO (18,000) $ 50,000 (2.100) IN 47.900 $ 33,300 0 $ 33,300 17 The Excel sheet above shows the income statement, the statement of retained earnings, and the statement of cash flows for the month ended April 30, 2018, and the unclassified balance sheet on April 30, 2018 Q1. Determine how well did Bedah Travel perform during its first month of operations? (4 marks) Q2. Explain where does Bedah Travel stand financially at the end of April? (6 marks)
