This third project requires you to invent a merchandising business. You are required to create the...

Transcribed Image Text:

This third project requires you to invent a merchandising business. You are required to create the financial statements for its first year of operations: 1. Create your company's multi-step income statement for the year ended 12/31/20. 2. Create the retained earnings statement for the year ended 12/31/20. 3. Create the classified balance sheet dated 12/31/20. 4. Give me a simple sentence about what your business sells. It can be stated before or after the financial statements. Hints and reminders: Make sure the statements 'flow' with each other. Be sure to start the income statement with Net Sales. Be sure to include a line for Operating Income and an item for the Other Revenue/Expense (Interest expense or Interest revenue) section of the income statement. Be sure to include Inventory as a current asset on your balance sheet and CGS on your income statement!! Be sure to include Accumulated Depreciation on the balance sheet if you record Depreciation expense on the income statement. Be sure you have an amount in the common stock account. You are not required to pay dividends. You will be 'making up' amounts. Your business can be as successful as you like. Just make sure your balance sheet balances! Hand in: 1. The three statements you created 2. The sentence describing what your company sells This third project requires you to invent a merchandising business. You are required to create the financial statements for its first year of operations: 1. Create your company's multi-step income statement for the year ended 12/31/20. 2. Create the retained earnings statement for the year ended 12/31/20. 3. Create the classified balance sheet dated 12/31/20. 4. Give me a simple sentence about what your business sells. It can be stated before or after the financial statements. Hints and reminders: Make sure the statements 'flow' with each other. Be sure to start the income statement with Net Sales. Be sure to include a line for Operating Income and an item for the Other Revenue/Expense (Interest expense or Interest revenue) section of the income statement. Be sure to include Inventory as a current asset on your balance sheet and CGS on your income statement!! Be sure to include Accumulated Depreciation on the balance sheet if you record Depreciation expense on the income statement. Be sure you have an amount in the common stock account. You are not required to pay dividends. You will be 'making up' amounts. Your business can be as successful as you like. Just make sure your balance sheet balances! Hand in: 1. The three statements you created 2. The sentence describing what your company sells