Module 01 Written Assignment The Accounting Equation

The conceptual framework reminds you that revenues are recognized when earned and not necessarily when collected. Also, expenses are recorded when incurred (used), not necessarily when paid. This is known as accrual accounting.

Bill Smith opened Smith Construction on April 1, 2010. Review the transactions and financial position of Smith Construction for April in the .

Requirements:

1. Enter the transactions for May into the accounting equation, calculating new balance after each entry.
2. Prepare the Income Statement for the month of May.
3. Prepare the Statement of Retained Earnings for the Month of May.
4. Prepare the Balance Sheet as of May 31, 20xx.

Submit your completed assignment by following the directions linked below. Please check the Course Calendar for specific due dates.

Save your assignment as a Microsoft Excel document. (Mac users, please remember to append the “.xlsx” extension to the filename.) The name of the file should be your first initial and last name, followed by an underscore and the name of the assignment, and an underscore and the date. An example is shown below:
Jstudent_exampleproblem_101504