AC2760 Week 4 Assignment: Wizard Services Co Offers Security

AC2760 Week 4 Assignment Wizard Services Co Offers Security

Instructions AC2760 Week 4 Assignment Wizard Services Co. offers security services to business clients. To do: 1. Complete the following end of period spreadsheet (work sheet) for Wizard Services Co. Please use the drop-down list (right of the cell) to enter the account description box on the worksheet. 2. Prepare the following: a. an income statement for July b. a retained earnings statement for July c. a balance sheet as of July 31. Week4 Worksheet Name: Section (if applicable): Enter the appropriate amount or item in the shaded cells. An asterisk (*) will appear next to an incorrect entry in the outlined cells. Please use the drop-down list (right of the cell) to enter the account description box on the worksheet in part 2a-2c.

Paper For Above instruction

Every financial statement summarized for Wizard Services Co. reflects the company's fiscal activities for the period ending July 31, 2012, providing a comprehensive overview of its financial health and operational results. Correctly preparing these documents requires meticulous attention to the information in the adjusted trial balance, which includes revenues, expenses, assets, liabilities, and other relevant account balances.

The income statement for July, as mandated, will compile all revenue and expense accounts to determine net income or loss for the period. Revenue accounts such as Service Revenue and Rent Revenue will be totaled, with expenses like wages, utilities, depreciation, supplies, insurance, miscellaneous, and rent expenses summed to compute total expenses. The difference between total revenues and total expenses will yield net income, which signifies the company's profitability for that month.

The retained earnings statement for July will start with the retained earnings balance as of July 1, 2012. It will then account for net income or loss generated during July, adjusting for dividends paid, to arrive at the ending retained earnings balance as of July 31, 2012. This document demonstrates how profits retained in the business are affected by distributions to shareholders, providing insight into the company's retained earnings growth or reduction over the period.

The balance sheet as of July 31 consolidates all assets, liabilities, and stockholders' equity accounts, offering a snapshot of Wizard Services Co.'s financial position. It will categorize assets into current assets—such as cash, accounts receivable, prepaid insurance, supplies, and UMA Computers—and property, plant, and equipment, including land, building, and equipment, less accumulated depreciation. Liabilities, comprising accounts payable, wages payable, and unearned rent, will be tallied to determine total liabilities. Stockholders' equity includes capital stock and retained earnings, indicating owners' residual interest in the company.

Throughout the creation of these reports, it is essential to verify that total debits equal total credits, ensuring the accounting equation remains balanced. The worksheet's drop-down menus facilitate accurate account descriptions, and correct classification of each account enhances clarity and usability of the financial statements.

In practice, preparing these financial documents involves analyzing the adjusted trial balance, integrating the data into the appropriate statements, and ensuring consistency and accuracy among all reports. Proper compilation enables management, investors, and creditors to assess Wizard Services Co.'s fiscal performance and position, assisting in informed decision-making.

References

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