Pf 061579- using the following blank forms make

Question

Assignment: Business, Accounting, and You

The goal of this graded project is to create the following financial statements for J & L Accounting, Inc.:

Balance sheet
Income statement
Statement of retained earnings
Post-closing trial balance

The financial statements must be created in one Microsoft Word document (.doc or .docx file). Alternatively, an Excel workbook may be used (.xls or .xlsx file). The Word or Excel file will be uploaded for grading.

INSTRUCTIONS

The project is to be done by hand with a pencil and paper. Use the blank forms provided. At the end of the project, you'll be given instructions for creating and uploading the financial statements in a Word or Excel file for grading.

Note: The formatting of financial statements is important. They follow Generally Accepted Accounting Principles (GAAP), which creates a uniformity of financial statements for analyz- ing. This allows for an easier comparison, as all businesses follow GAAP. Therefore, the financial statements should be created exactly the same way shown or referenced in the text- book. Failure to do so will result in a loss of points.

The project references "debits equaling credits." This is a fun- damental principle of accounting that can't be violated and if so is not acceptable under any circumstance. Debits not equaling credits allows for "cooking of the books," which is presenting false information. It also allows for embezzlement, which is theft by management or employees. If debits don't equal credits, the cause may be a lack of understanding of accounting principles, such as those presented in the text- book and assigned homework problems, or a lack of focus and concentration when making journal entries, posting to ledger accounts, or completing math. Remember-instructors are available to help you with material you may be struggling with. Mistakes of the lack-of-focus variety are best corrected by going back over the work until the error is found.

The accounting equation must balance on the balance sheet. This is another fundamental principle of accounting that can't be violated and if so is completely unacceptable. When the equation doesn't balance and the numbers are "fudged," this is easily detectable by someone who knows accounting. If your debits equal your credits and you understand which general ledger accounts belong on which financial state- ments, then the accounting equation should balance. It's really all about understanding the concepts and applying that understanding.

The following financial statements are provided from the prior accounting period for J & L Accounting, Inc.:

a) Post-closing trial balance
b) Balance sheet
c) Income statement
d) Statement of retained earnings

J & L Accounting, Inc. Post-Closing Trial Balance December 31, 2012
	BALANCE
ACCOUNT TITLE	DEBIT	CREDIT
Cash, Business Checking	20,500.00
Accounts Receivable
Prepaid Rent
Vehicles	48,000.00
Accumulated Depreciation, Vehicles		12,000.00
Equipment	3,600.00
Accumulated Depreciation, Equipment		600.00
Accounts Payable
Common Stock		38,000.00
Retained Earnings		21,500.00
Dividends
Service Revenue
Advertising Expense
Rent Expense
Office Supplies Expense
Telephone Expense
Utilities Expense
Depreciation Expense
TOTALS	72,100.00	72,100.00

J & L Accounting, Inc. Balance Sheet As of December 31, 2012
ASSETS
Cash, Business Checking		20,500.00
Accounts Receivable		0.00
Prepaid Rent Vehicles	48,000.00	0.00
Less: Accumulated Depreciation, Vehicles	12,000.00	36,000.00
Equipment	3,600.00
Less: Accumulated Depreciation, Equipment	600.00	3,000.00
TOTAL ASSETS		59,500.00

LIABILITIES
Accounts Payable	0.00
TOTAL LIABILITIES	0.00
STOCKHOLDERS' EQUITY
Common Stock	38,000.00
Retained Earnings	21,500.00
TOTAL STOCKHOLDERS' EQUITY	59,500.00
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	59,500.00

J & L Accounting, Inc. Income Statement For the Month Ending December 31, 2012
REVENUES
Service Revenue	10,275.00
EXPENSES
Advertising Expense	2,300.00
Rent Expense	1,000.00
Office Supplies Expense	300.00
Telephone Expense	750.00
Utilities Expense	3,200.00
Depreciation Expense	1,100.00
TOTAL EXPENSES	8,650.00
NET INCOME	1,625.00

J & L Accounting, Inc. Statement of Retained Earnings For the Month Ending December 31, 2012
Retained Earnings, December 1, 2012	19,875.00
Add: Net Income	1,625.00
Subtotal	21,500.00
Less: Dividends	0.00
Retained Earnings, December 31, 2012	21,500.00

1) Using the following blank forms (make as many copies as necessary), set up the general ledger accounts for the general ledger and insert the beginning balances for the accounts from the post-closing trial balance. The balances from the post-closing trial balance become the beginning balances of the accounts for the next account period.