Completing this activity will help you learn to:

Analyze elements of the accounting equation. Extract information from a data set using Excel formulas, functions, and/or pivot tables.

Scenario:

Fast Fotos is a new company that provides photography services, specializing in residential home photos for local real estate firms. The owner of Fast Fotos Company opened a business checking account and deposited cash in exchange for common stock on April 1.

Fast Fotos bills each realtor when a job is complete and gives the customer 15 days to pay. Fees Earned is the revenue account the company uses when it provides its services. The company hires two online vendors who do photo editing and processing for the business. The vendors bill Fast Fotos on account for their services and give the company 30 days to pay.

The company's chart of accounts appears below.

Chart of Accounts

Cash

Accounts Receivable

Accounts Payable

Common Stock

Retained Earnings

Dividends

Fees Earned

Processing Expense

Automobile Expense

Advertising Expense

Administrative Expense

Fast Fotos incurs four expenses: a. Processing Expense: photo editing and processing services b. Automobile Expense: car rental and gas expenditures c. Advertising Expense: online advertisements and purchases of small give-away items with its logo to promote the business d. Administrative Expense: a monthly fee for administrative services

The Data worksheet contains a list of Fast Fotos' transactions for April, the first month of operations.

The transactions are listed in chronological order. Their dates appear in column A. Each transaction occupies two rows and impacts two accounts. The amount of each transaction appears in column C, once for each account. A positive amount indicates an increase in the account's balance. A negative amount indicates a decrease.

Open spreadsheet

Steps to create a pivot table:

S1. Select a cell in the data on the Data worksheet. S2. Select Insert / PivotTable. The data range will automatically be inserted. A Create PivotTable window should appear. S3. In the window, under "Choose where you want the PivotTable report to be placed," select New Worksheet. A new worksheet should appear with the PivotTable. S4. A PivotTable Field List should pop up. Drag fields into rows, columns, filters, and values areas as needed. (If this gray work box does not appear, right click in the pivot table and select "Show Field List.")

Questions:

Use the information on the Data worksheet and pivot tables, formulas, and/or functions to answer the following questions.

Q1. What is the amount of total revenue? fill in the blank 1 of 1$

Q2. What is the amount of net income? fill in the blank 1 of 1$

Q3. What is the amount of total assets? fill in the blank 1 of 1$

Q4. What is the amount of liabilities + stockholders' equity once temporary accounts are closed to retained earnings? fill in the blank 1 of 1$

Q5. The retained earnings amount at the end of the first accounting period for a new business equals

Net income + dividends Net income - dividends Net income - dividends + common stock Net income + dividends - common stock