The questions 1 &2

2) Sukminder and Chris, two friends from high school, incorporated their design company and began operations on June 1,2023 . During that first month of operations, the company provided services for clents. It is now June 30 , 2023, and Sukminder and Chris are wondering how their compary performed in its first month of operations. They have provided you with the following information: Required (26 marks): a) Prepare an income statement for the month of June for this company. b) Prepare a statement of retained earnings for the month of lune for this company. c) Prepare a balance sheet as at June 30, 2023 for this company. d) Using three indicators, explain to Sukminder and Chris how their company is performing financially. 3) IN YOUR OWN WORDS, if an account is a contra account, what does this mean? Give an ecample of a contra account. (4 marks) 4) IN YOUR OWN WORDS describe what it means if something is deferred and give an example. IN YOUR OWN WORDS describe what it means if something is accrued and give an example ( 6 marks). 2 Note: this assignment must be submitted by the deadline above. You can submit the assignment in class, email it to me (I will confirm receipt), or drop it off in the Arts Office. Assignments submitted late will not be marked and will receive a grade of zero. 1) Below is the trial balance as at September 1,2023 for a new service business you have started at the beginning of this month. During the month of September, your business completed the following transactions: a) Borrowed $70,000 from ClBC with the company signing a note payable in the name of the business. b) Paid cash of $60,000 to Brandon Area Realtors to acquire land for the business. c) Performed service for local customers and received cash of $5,000. d) Purchased supplies on account in the amount of $300. e) Performed customer service and earned revenue on account in the amount of $4,000. f) Paid $1,200 on account. g) Used cash to pay the following expenses: a. Salaries $3,000 b. Rent $1,500 c. Interest $400 h) Received $3,100 on account. i) Received a $200 Manitoba Hydro bill that will be paid next month. j) Declared and paid a dividend of $300. Required (53 marks): a) Prepare journal entries for transactions a j above. If no journal entry is needed, state the reason why. b) Create T-accounts for the opening balances shown in the trial balance. Create additional T-accounts as needed and post all journal entries to the appropriate accounts (reference accordingly). c) Create a trial balance as at September 30, 2023. 2) Sukminder and Chris, two friends from high school, incorporated their design company and began operations on June 1,2023 . During that first month of operations, the company provided services for clents. It is now June 30 , 2023, and Sukminder and Chris are wondering how their compary performed in its first month of operations. They have provided you with the following information: Required (26 marks): a) Prepare an income statement for the month of June for this company. b) Prepare a statement of retained earnings for the month of lune for this company. c) Prepare a balance sheet as at June 30, 2023 for this company. d) Using three indicators, explain to Sukminder and Chris how their company is performing financially. 3) IN YOUR OWN WORDS, if an account is a contra account, what does this mean? Give an ecample of a contra account. (4 marks) 4) IN YOUR OWN WORDS describe what it means if something is deferred and give an example. IN YOUR OWN WORDS describe what it means if something is accrued and give an example ( 6 marks). 2