- You will use the information from the Dakota Labs Module 1 assignment to complete this project.
- Create a new T-account in Excel titled Income Summary.
- Close out the revenue and expense accounts to the income summary account.
- Close out the income summary account to the retained earnings account.
- Once this has been completed, construct a simple income statement, balance sheet, and statement of cash flows.
- Comment on what these financial statements tell you about your company. Did you make a profit or experience a loss? Are your cash flows coming from operations or financing?
- You will need the data from another question which I will post down below:
- Dakota Labs experienced the following events during 2018:
- Beginning balances are: cash, $2,000; land, $12,000; common stock, $6,000; retained earnings, $8,000
- Received $20,000 from the sale of common stock
- Paid $12,000 cash for lab equipment
- Provided services for $20,000 cash
- Paid $1,000 for utilities expense
- Paid $10,000 for wages expense
- Provided services for $15,000 on account
- Paid $8,000 for rent expense
- Purchased $3,500 on account
