As a team, prepare the income statement of Maltbee Lawn Service for the four months May through August. Prepare the classified balance sheet of Maltbee Lawn Service at August 31.
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i don't know how to do this so if anyone could help me please its worth 10% and would mean a lot
To prepare the income statement and classified balance sheet for Maltbee Lawn Service, you will need the financial records for the months of May through August. Here are the steps to get the information needed for each statement:
Income Statement for May through August:
1. Gather all the relevant revenue and expense information for each month (May, June, July, August). This includes sales revenue from lawn services, as well as any other sources of revenue the company may have (e.g., equipment sales, landscaping projects, etc.).
2. Sum up the revenue figures for each month to get the total revenue for the four-month period.
3. Similarly, sum up the expenses for each month, including direct costs of providing lawn services (such as labor, fuel, equipment maintenance), overhead costs (such as office expenses, insurance, and utilities), and any other expenses.
4. Calculate the net income for each month by subtracting total expenses from total revenue.
5. Finally, add up the net incomes for the four months to get the Net Income for the period from May through August.
Classified Balance Sheet at August 31:
1. Gather the balances of all the company's assets as of August 31. This includes cash, accounts receivable (if any), equipment, vehicles, and any other assets owned by the company.
2. Classify the assets into current assets (such as cash and accounts receivable) and long-term assets (such as equipment and vehicles).
3. Gather the balances of all the company's liabilities as of August 31. This includes accounts payable, loans, and any other outstanding debts.
4. Classify the liabilities into current liabilities (such as accounts payable) and long-term liabilities (such as long-term loans).
5. Calculate the owner's equity by subtracting total liabilities from total assets.
6. Present the information in a balance sheet format, with assets listed on the left side and liabilities and owner's equity on the right side.
By following these steps and gathering the necessary financial information, you will be able to prepare the income statement and classified balance sheet for Maltbee Lawn Service for the four months of May through August and as of August 31, respectively.