1. You will now use some of the skills you have acquired in this chapter to prepare a business letter to Samuel Lucas, the owner of Sam's Softball City. The purpose of the letter is to provide a summary of the first two months of operation. The steps you should take are outlined below: A. Return to Simply Accounting and load Sam's Softball City 8. B. Choose Reports, Financials, Balance Sheet. Display the balance sheet for May 31. (Do not check the Comparative Balance Sheet option.) C. Export the balance sheet to Microsoft Excel. Use steps similar to the ones you used for the income statement. (See pages 286-287.) D. Use Microsoft Excel to prepare a common-size balance sheet for Sam's Softball City. Balance Sheet File Options Help Comparative Balance Sheet As At 5/31/01 As At 4/30/01 Change ASSETS Current Assets Bank AR--Chatham Steelers 11,266.30 5,243.00 AR-Infield Flyers AR-Remdal Red Sox Supplies Total Current Assets Fixed Assets Equipment Total Fixed Assets 38,700.25 0.00 -27,433.95 5,243.00 0.00 221.00 -221.00 535.00 535.00 0.00 2,484.00 7.479.00 -4,995.00 19,528.30 46,935.25 -27,406.95 36,991.08 31,996 08 4,995.00 36,991.08 31,996.08 4,995.00 TOTAL ASSETS LIABILITIES 56,519.38 78,931.33 -22,411.95 Current Liabilities Bank Loan AP--Cannon Sports 35,000.00 0.00 35,000.00 10,644.40 0.00 -10,644.40 AP--Cell Tel AP--Eastern Electric bone 0.00 0.00 0.00 AP--Ewert Equipment 1,495.86 12,425.50 0.00 23,425.50 1,495.86 -11,000.00 AP--Pro Motion Advertising 1,444.50 1,444.50 0.00 AP--Sandhu Sporting Goods 0.00 2,645.00 -2,645.00 GST Payable 745.50 140.00 605.50 GST Recoverable -427.98 -2,968.07 2,540.09 GST Owed 317.52 -2,828.07 3,145.59 Total Current Liabilities 50,683.38 70,331.33 -19,647.95 TOTAL LIABILITIES 50,683.38 70,331.33 -19,647.95 EQUITY Samuel Lucas, Capital Opening Capital 20,000.00 20,000.00 0.00 S. Lucas, Drawings -6,000.00 -3,000.00 -3,000.00 Current Earnings -8,164.00 -8,400.00 236.00 Ending Capital 5,836.00 8,600.00 -2,764.00 TOTAL EQUITY 5,836.00 8,600.00 -2,764.00 LIABILITIES AND EQUITY 56,519.38 78,931.33 -22,411.95 D X Expenses by Account Expenses by Account 4/1/01 - 5/31/01 InvocaAvd Other Expenses 5040 Rent Expense 9,000.00 (43.24%) 5010 Advertising Expense 5040 Rent Expense 05060 Utilities Expense 20 5070 Wages Expense me Income Statement File Options Help 4/1/01 to 5/31/01 REVENUE Rental Revenue TOTAL REVENUE EXPENSE 12,650.00 12,650.00 12,650.00 Advertising Expense 1,350.00 Bank Charges 250.00 Miscellaneous Expense 48.00 Rent Expense 9,000.00 Telephone Expense 168.00 Utilities Expense 1,398.00 Wages Expense 8,600.00 20,814.00 TOTAL EXPENSE 20,814.00 NET INCOME -8,164.00 FIGURE 8.18 Data for creating a pie chart for Sam's Softball City. Expenses by Account Select the expenses to be shown individually on the graph. All other expenses will be put into the category 'Other Expenses'. Start: 4/1/01 Select Expenses... 5010 Advertising Expense 5020 Bank Charges 5030 Miscellaneous Expense 5040 Rent Expense 5050 Telephone Expense 5060 Utilities Expense 5070 Wages Expense Include inactive accounts Finish: 5/31/01 Select All OK Cancel