Your completed accounting workbook will consist of journal entries for each transaction and postings of transactions to account ledgers. You will develop a trial balance from ledger balances and adjust revenue and expense accounts, as necessary, to ensure that revenues and expenses are reported in the appropriate period under the accrual accounting method. The adjusted trial balance will be used to prepare the income statement, the statement of owners equity, and the balance sheet. After the preparation of the financial statements, closing entries will be entered to transfer earnings to equity and prepare temporary accounts for the new accounting period.

Financial Statements: Create financial statements using appropriate methods based on accepted accounting principles. Be sure to prepare these financial statements in the order listed, as there are important interdependencies among them.

1. Income Statement: Prepare the income statement using the adjusted trial balance.

2. Statement of Owners Equity: Prepare the statement of owners equity using the adjusted trial balance.

3. Balance Sheet: Prepare the balance sheet using the adjusted trial balance.

4. Closing Entries: Complete the Closing Entries tab of the company accounting workbook by closing all temporary income statement amounts to create closing entries.

5. Post-Closing Trial Balance: Prepare the Post-Closing Trial Balance tab of the company accounting workbook in preparation for the next accounting period.

Summary Report

After you have completed preparing all the financial statements, analyze the statements and write a short report summarizing your findings. Use the template provided in the What to Submit section to complete your report.

4. Summary: Write a summary of what the financial statements indicate about the companys financial health and performance.

   1. Purpose: What kind of information would these financial statements provide to various aspects of the business?

   2. Analysis: What is the companys cash position, its net income as a percentage of sales, and its current liabilities to current assets position?

A Company
Income Statement
For Qtr. Ending 12/31/20XX
Revenues
Total Revenues	-
Gross Profit	-
Operating Expenses:
Total Operating Expenses:	-
Net Income	-

	A Company
	Statement of Stockholder's Equity
	For Qtr. Ending 12/31/20xx
	Common Stock	Retained Earnings	Total
Beginning Balances, September 30	0	0	0
Issued Common Stock
Net Income
Dividends
Ending Balances, December 31:	-	-	-

		A Company
		Balance Sheet
		As of December 31, 20XX
Assets				Liabilities and Owners' Equity
Current Assets:				Current Liabilities:
				Total Current Liabilities	-
				Long Term Liabilities:
Total Current Assets	-			Total Long Term Liabilities:	-
				Total Liabilities:	-
				Shareholder's Equity:
Non-Current Assets:
				Total Equity	-
Baking Equipment (Net)	-
Total Assets:	-			Total Liabilities & Equity	-

	A Company
	Closing Entries
	Qtr ending 12/31/20xx
Date	Accounts	Debit	Credit
31-Dec	Bakery Sales
	Merchandise Sales
	Retained Earnings
31-Dec	Retained Earnings
	Baking Supplies Expense
	Rent Expense
	Wages Expense
	Office Supplies Expense
	Business License Expense
	Office Expense
	Depreciation Expense
	Insurance Expense
	Advertising Expense
	Interest Expense
	Telephone Expense
	COGS
31-Dec	Retained Earnings
	Dividends

A Company
Post-Closing Trial Balance
Qtr. Ending 12/31/20xx
	Unadjusted Trial Balance
Account	Debit	Credit
Cash
Baking Supplies
Merchandise Inventory
Prepaid Rent
Prepaid Insurance
Baking Equipment
Accumulated Depreciation
Office Supplies
Accounts Receivable
Accounts Payable
Wages Payable
Interest Payable
Notes Payable
Common Stock
Retained Earnings
Total	-	-