Project 3

3.From the Adjusted Trial Balance you made, prepare the retained earnings statementfor theyear ended 12/31/23.

4.From the Adjusted Trial Balance you made, prepare the classified balance sheetdated 12/31/23.

5.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 begin the income statement with Net Salesas the name for the Sales Revenue account.

Be sure to include a line for Operating Income.

Be sure to include the Other Revenue/Expensesection on the income statement.

Be sure to label and total the current asset and current liability sections of your classified balance sheet.

Be sure to present Depreciable Asset along with its Accumulated Depreciation account on the balance sheet correctly.

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 Adjusted Trial Balance

2.The three financial statements you prepared

3.The sentence describing what your company sells

Project 3 – 40 points
ACTG 3000
This third project requires you to invent a merchandising business (your
company sells some kind of goods). You are required to prepare the financial
statements for its first year of operations:
1. Fill in the dollar amounts for your company’s Adjusted Trial Balance dated
12/31/2023, including the company name in the heading. I’ve left some
blank lines in case you want to include more assets, liabilities, or
expenses. Remember, the Debit and Credit column Totals must
match!
2. From the Adjusted Trial Balance you made, prepare your company’s
multi-step income statement for the year ended 12/31/23.
3. From the Adjusted Trial Balance you made, prepare the retained
earnings statement for the year ended 12/31/23.
4. From the Adjusted Trial Balance you made, prepare the classified
balance sheet dated 12/31/23.
5. 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 begin the income statement with Net Sales as the name for the Sales
Revenue account.
Be sure to include a line for Operating Income.
Be sure to include the Other Revenue/Expense section on the income
statement.
Be sure to label and total the current asset and current liability sections of your
classified balance sheet.
Be sure to present Depreciable Asset along with its Accumulated
Depreciation account on the balance sheet correctly.
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 Adjusted Trial Balance
2. The three financial statements you prepared
3. The sentence describing what your company sells
Adjusted Trial Balance
12/31/2023
Debit
Cash
Accounts Receivable
Inventory
Supplies
Equipment
Accumulated Depreciation – Equipment
Accounts Payable
Unearned Revenue
Longterm Notes Payable
Common Stock
Retained Earnings
Dividends
Sales Revenue
Cost of goods sold
Wages & Salaries expense
Rent expense
Supplies expense
Depreciation expense – Equipment
Interest expense
Totals
Credit