Scenario: You were recently hired as an entry-level bookkeeper for a service business that recently opened. This is the first month in operation for the business and your first task is to record business transactions for their first month using the source documents and transaction data the owner will provide to you. Because this is a small business that does not use computerized accounting, you will apply the accounting cycle in Excel to record transactions and generate financial reporting results for the owner.

a. Discuss the results regarding the profitability of the first month of operations, and consider how well the company is positioned to meet current liabilities. Be sure to include the percentage of revenues that result in profitet income and the current ratio when discussing profitability and liquidity based on the recorded months results. Consider key points in your observations of results: is the company operating profitably (what percent of revenues result in profitet income)? How well-poised are they to meet liabilities (discuss liquidity and current ratio)?

A Company Income Statement For Month ending 3/31/20XX Revenues \begin{tabular}{|c|lr} \hline Service Revenue & $ & 6,225.00 \\ \hline Total Revenues & $ & 6,225.00 \\ \hline \end{tabular} Operating Expenses: Rent Expense Business License expense Insurance Expense Repairs And Maintenance Advertising Expense Wages Expense Utilities Expense Depreication Expense \begin{tabular}{|lr|} \hline$ & 950.00 \\ \hline$ & 250.00 \\ \hline$ & 750.00 \\ \hline$ & 95.00 \\ \hline$ & 500.00 \\ \hline$ & 275.00 \\ \hline$ & 135.00 \\ \hline$ & 45.83 \\ \hline & \\ \hline & 3,000.83 \\ \hline \end{tabular} Total Operating Expenses: 3,224.17 Net Income 3,224.17 Company Name Statement of Owner's Equity Period Ending 03/31/20XX A Company Balance Sheet As of March 31, 20XX A Company Closing Entries Month ending 03/31/20XX