You are the staff accountant working at a local t-u-t-o-r-i-n-g center. The monthly financial statements (Income Statement, Statement of Retained Earnings, and Balance Sheet) were just finalized and released to the employees of the center. You hear some of the other employees talking about the financial statements. In most cases, the employees do not understand the purpose of the statements. You have been asked by your supervisor to create a MEMO to be sent to the employees of the center that describes the purpose of the financial statements. In this memo you are expected to explain (IN WORDS THAT EVERYONE CAN UNDERSTAND) what accounting elements (all parts of the accounting equation) go on each statement, and what each of those elements represent. You are also expected to explain the purpose of each of the 3 statements (what should the reader know about the company by looking at the statement).
Your memo should be NO LONGER THAN 2 PAGES. Memos begin with a heading (similar to that of an email showing To: From: Subject:) and use SINGLE SPACING. Your memo is expected to be written with proper grammar and punctuation, and should be clear and concise (get to the point!).