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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 90
Inferring Transactions and Creating Financial Statements
An analysis of transactions made during July 2013 by NEPCO, an Internet service provider, during its first month of operations is shown below. Increases and decreases affecting revenues and expenses are explained.
Required:
1. Describe the business activities that led to the accounting equation effects for each transaction shown above.
2. Prepare an income statement and a statement of retained earnings for July, and a classified balance sheet as of July 31, 2013. (These financial statements would be considered "preliminary" because they use unadjusted balances.)
An analysis of transactions made during July 2013 by NEPCO, an Internet service provider, during its first month of operations is shown below. Increases and decreases affecting revenues and expenses are explained.
Required:
1. Describe the business activities that led to the accounting equation effects for each transaction shown above.
2. Prepare an income statement and a statement of retained earnings for July, and a classified balance sheet as of July 31, 2013. (These financial statements would be considered "preliminary" because they use unadjusted balances.)
Explanation
Verified
Verified
1.
Explain the business activities:
Acc...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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