Prepare Financial Statements & Evaluate Business

Chart of Accounts

Check and use the Chart of Accounts provided (do not create new accounts). Prepare the General Journal for the month (all journal entries including AJE). Prepare Closing Entries for the month of May to continue with business in the month of June as the next period. Post all transactions to the T-accounts and prepare a trial balance. Show a detailed balance of each of these accounts for the first month of operations (end of Month), Prepare the Financial Statements in good form including contingency disclosures that are exclusive of the transactions of this case (do not include general notes). Prepare: an Income Statement, a Statement of Owners Equity – Retained Earnings, and a Statement of Financial Position (Balance Sheet). Cash flow statement is not required. Each General Journal entry should have a brief explanation under. Based on all the information provided in this project, prepare a memo to Carol Yang where you as a professional accountant evaluate the business. Specifically address his concerns: The monthly dividends being paid will be more or less than the annual 35% expected? With the data of the financial statements that you have completed, is the business sustainable? Make one clear and executable suggestions of how the business owner can have a tighter control of cash sales?