Refer to the transactions for Neveranerror Inc. in Problem 3-7.

Required

1. Prepare journal entries on the books of Neveranerror to record the transactions entered into during the month. Ignore depreciation expense and interest expense.

2. Prepare a trial balance at June 30, 2010.

3. Prepare the following financial statements:

a. Income statement for the month ended June 30, 2010.

b. Statement of retained earnings for the month ended June 30, 2010.

c. Classified balance sheet at June 30, 2010.

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. Alternate Problems Problem 3-1A Events to Be Recorded in Accounts The following events take place at Anaconda Accountants Inc.:

1. Supplies are ordered from vendors, who will deliver the supplies within the week.

2. Vendors deliver supplies on account, payment due in 30 days.

3. New computer system is ordered.

4. Old computer system is sold for cash.

5. Services are rendered to customers on account. The invoices are mailed and due in 30 days.

6. Cash received from customer payments is deposited in the bank night depository.

7. Employees are paid weekly paychecks.

8. Vendors noted in (2) are paid for the supplies delivered.