Refer to the transactions for Never an error Inc. in Problem 3-7. Required 1. Prepare journal entries

Question:

Refer to the transactions for Never an error Inc. in Problem 3-7.

Required

1. Prepare journal entries on the books of Never an error Inc. to record the transactions entered into during the month. Ignore depreciation expense and interest expense.

2. Prepare a trial balance at June 30, 2012.

3. Prepare the following financial statements:

a. Income statement for the month ended June 30, 2012

b. Statement of retained earnings for the month ended June 30, 2012

c. Classified balance sheet at June 30, 2012

4. Assume that you have just graduated from college and have been approached to join this company as an accountant. From your reading of the financial statements for the first month, would you consider joining the company? Explain your answer. Limit your answer to financial considerations only.

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...