Accounting

Overview

In this assignment, you are required to answer questions designed to test your knowledge of the basic accounting environment, as well as prepare income, balance, and retained earnings statements.

Preparation

· Download the  Week 1 Assignment Template [DOCX]  Download Week 1 Assignment Template [DOCX]. Use it to complete this assignment.

· Review all assigned readings.

Note: Accuracy in accounting is paramount. Take your time and double-check your work for errors or omissions.

Scenario for Parts 2–4

Imagine that you have been given June 2010 financial transaction data from Moonlight Drive-In Theater and have been asked to prepare specified financial statements.

Instructions

Complete each of the following assignment parts in sequence using the  Week 1 Assignment Template [DOCX]  Download Week 1 Assignment Template [DOCX]. All parts of the template should be submitted together. Each section of the template corresponds to one of the following assignment parts:

Part 1: Accounting Environment

Respond to the short-answer accounting environment questions found in the template on the "Accounting Environment" tab, applying proper grammar, usage, and mechanics.

Part 2: Income Statement

Source

· Edwards, J. D., Hermanson, R. H., & Maher, M. W. (2011). a ccounting principles: A business perspective, financial accounting (Chapters 1–8) [PDF]  Download Accounting principles: A business perspective, financial accounting (Chapters 1–8) [PDF]. Textbook Equity.

· Problem 2.18.5 C, page 67.

· Prepare an income statement for June 2010.  Note: Make sure to identify account names and the amounts.

· Part 3: Statement of Retained Earnings

· Prepare a statement of retained earnings for June 2010 using the information in Part 2.

· Part 4: Balance Sheet

· Prepare a balance sheet as of June 30, 2010, using the information in Part 2.  Note: Make sure to identify account names and the amounts.

Submit your completed template to this assignment.

Competencies Measured

By successfully completing this assignment, you will demonstrate your proficiency in the following course competencies and evaluation criteria:

· Competency 1: Define accounting terminology and its application to accounting principles.

· Answer 4–5 accounting environment questions correctly.

· Competency 3: Prepare financial statements from accounting system data.

· Prepare an income statement with one or two errors.

· Prepare a statement of retained earnings with one or two errors.

· Prepare a balance sheet with one or two errors.

· Competency 4: Communicate effectively and professionally.

· Convey clear meaning through appropriate word choice and usage.