Project 3

ACTG 3000

This third project requires you to invent a merchandising business (your company sells some kind of goods).  You are required to prepare the financial statements for its first year of operations:

1.Fill in the dollar amounts for your company’s Adjusted Trial Balance dated 12/31/2023, including the company name in the heading. I’ve left some blank lines in case you want to include more assets, liabilities, or expenses. Remember, the Debit and Credit column Totals must match!

2.From the Adjusted Trial Balance you made, prepare your company’s multi-step income statement for the year ended 12/31/23.

3.From the Adjusted Trial Balance you made, prepare the retained earnings statement for the year ended 12/31/23.

4.From the Adjusted Trial Balance you made, prepare the classified balance sheet dated 12/31/23.

5.Give me a simple sentence about what your business sells.  It can be stated before or after the financial statements.

Hints and reminders:

Make sure the statements ‘flow’ with each other.

Be sure to begin the income statement with Net Sales as the name for the Sales Revenue account.

Be sure to include a line for Operating Income.

Be sure to include the Other Revenue/Expense section on the income statement.

Be sure to label and total the current asset and current liability sections of your classified balance sheet.

Be sure to present Depreciable Asset along with its Accumulated Depreciation account on the balance sheet correctly.

You will be ‘making up’ amounts.  Your business can be as successful as you like.  Just make sure your balance sheet balances!

Hand in:

1.The Adjusted Trial Balance

2.The three financial statements you prepared

3.The sentence describing what your company sells