ASSIGNMENT DUE 06/15/23 BEFORE 5:00 PM MOUNTAIN TIME.

THANK YOU SO MUCH FOR YOUR HELP!!!

I need assistance in preparing a financial report based on the statements below. In addition to the financial statement results, the owners have requested that I provide them with additional information as further growth is anticipated. They would like more input from me to support the best possible decisions for the business. The owners are requesting some suggestions on simple internal controls they can integrate to ensure protection of company assets, and accuracy in the company's financial data. The owners are also considering acquiring more long-term/fixed assets, such as vehicles, equipment, buildings, and so on. They would like my input on the different options available for depreciation of these costs. Adding sales of product is also a consideration for expansion. The owners want to know what accounting considerations will be involved with this change.

1. 1. Purpose: Discuss the accounting process and the resulting financial statements as they relate to meeting the informational needs of the user.
   2. Process: Explain the process used to produce accurate account balances and financial statements from the individual transaction data.
      1. Consider what is being communicated through each of the financial statements you prepared (income statement, statement of equity and balance sheet) and how this information will be used in business decision making and planning.
   3. Analysis: Explain the company's cash position, its net income as a percentage of sales, and its current liabilities to current assets position.
   4. Results: Discuss the results regarding profitability of the first month of operations.
      1. Consider how well the company is positioned to meet current liabilities.
      2. Be sure to include the percentage of revenues that result in profit/net income and the current ratio when discussing profitability and liquidity based on the recorded month's results.
      3. Consider key points in your observations of results: is the company operating profitably (what percent of revenues result in profit/net income)? How well-poised are they to meet liabilities (discuss liquidity and current ratio)?
   5. Recommendations: Recommend a simple system of controls that can be implemented to ensure protection of company assets and the accuracy and integrity of their financial data as they anticipate further growth.
      1. Consider additional controls that will support the potential for adding merchandise and additional assets with business growth/expansion.
   6. Asset Valuation: Discuss the treatment of current and long-term assets on the balance sheet.
      1. Discuss at least two different methods of depreciation. Consider how the methods of depreciation will be determined.
      2. Discuss how LIFO, FIFO, and average methods will differ and provide examples of types of applicable merchandising.
      3. Consider how accounting will change with the addition of merchandise inventory.

Process

[In this section I need to discuss the process used to generate accurate financial statement results for the business owner from the list of business transactions provided. Explain what is being communicated through each of the financial statements I prepared (income statement, statement of equity and balance sheet) and how this information will be used in business decision making and planning.]

Financial Statement Analysis

[This section should center on my analysis of the financial performance of the company based on the statements I prepared. Discuss key points on my observations of results: Is the company operating profitably (what percent of revenues result in profit/net income)? How well poised are they to meet liabilities (discuss liquidity and current ratio)?.]

Looking to the Future

[In response to the owner's request for additional information and support for future growth, discuss accounting considerations associated with the acquisition of additional long term/fixed assets, and the addition of merchandise inventory. How will the company account for the costs of long-term assets? How will the method of depreciation be determined? (Expand on 2 different methods of depreciation to demonstrate ideal application). How does accounting change with the addition of merchandise inventory? How will it be determined which inventory costing method to apply? (Discuss how the FIFO, LIFO, and Average methods differ and provide examples of the types of merchandising scenarios that would be ideally applicable in each case.)]

	A Company
	General Journal Entries
Date	Accounts	Debit	Credit
1-Mar	Cash	125,000.00
	Notes Payable		125,000.00
	Business Licence Expense	250.00
	Cash		250.00
2-Mar	Rent expense	950.00
	Prepaid Rent	950.00
	Cash		1,900.00
5-Mar	Cash	15,000.00
	Office Furniture	2,750.00
	Owner's capital		17,750.00
6-Mar	Cash	650.00
	Service Revenue		650.00
8-Mar	Advertising Expense	500.00
	Accounts Payable		500.00
10-Mar	Accounts Receivable	1,725.00
	Service Revenue		1,725.00
15-Mar	Insurance Expense	750.00
	Cash		750.00
20-Mar	Utilities Expense	135.00
	Accounts Payable		135.00
20-Mar	Maintenance Expense	95.00
	Cash		95.00
22-Mar	Draw	500.00
	Cash		500.00
25-Mar	Office Supplies	215.00
	Cash		215.00
25-Mar	Cash	350.00
	Service Revenue		350.00
30-Mar	Accounts Payable	500.00
	Cash		500.00
31-Mar	Wage Expense	275.00
	Wage Payable		275.00
31-Mar	Accounts Receivable	3,500.00
	Service Revenue		3,500.00
31-Mar	Depreciation Expense	45.83
	Accumulated Depreciation		45.83
	Total	154,140.83	154,140.83