Required 

a) Prepare the income statement of Deagan Lawn Service for the four months May through August.

b) Prepare the classified balance sheet of Deagan Lawn Service at 31 August

c) Was Deagan’s summer work successful? Give the reason for your answer.

Required 

Write a report to address the following considerations: 

a) Will you use the cash basis or the accrual basis of accounting? Give a complete description of your reasoning. 

b) How often do you want financial statements? Why? Discuss how you will use each financial statement. 

c) What kind of revenue will you earn? When will you record it as revenue? How will you decide when to record the revenue? 

Required 

Assume the roles of Brent and Den, the partners who will own the Copy Centre. 

1. On behalf of Brent and Den write a loan request that Brent and Den will submit to a bank with the intent of borrowing $80000 to be paid back over three years. The loan will be a personal loan to the partnership of Brent and Den, not to the Copy Centre. The request should specify all the details of Brent’s and Den’s plan that will motivate the bank to grant the loan. Include a budgeted income statement for the first six months of the copy centre’s operation. 

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