An analysis of transactions made during July 2014 by NepCo, an Internet service provider, during its first

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An analysis of transactions made during July 2014 by NepCo, an Internet service provider, during its first month of operations is shown below. Increases and decreases affecting revenues and expenses are explained.

Shareholders' Equity Contributed Capital Liabilities Accounts Assets Accounts Retained Earnings Receivable Supplies Equi

Required
1. Describe the business activities that led to the accounting equation effects for each transaction shown above.
2. Prepare an income statement and a statement of retained earnings for July, and a classified balance sheet as of July 31, 2014. (These financial statements would be considered "preliminary" because they use unadjusted balances.)

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For  book-img-for-question

Fundamentals of Financial Accounting

ISBN: 978-1259103292

4th Canadian edition

Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh

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