Journal Entries, Trial Balance, and Financial Statements (Appendix) Refer to the transactions for Neveranerror Inc. in Problem 3-7.
Refer to the transactions for Neveranerror Inc. in Problem 3-7. Required
1. Prepare journal entries on the books of Neveranerror to record the transactions entered into during the month. Ignore depreciation expense and interest expense.
2. Prepare a trial balance at June 30.
3. Prepare the following financial statements: a. Income statement for the month of June. b. Statement of retained earnings for the month of June. c. Classified balance sheet at June 30.
4. Assume that you have just graduated from college and have been approached to join the company as an accountant. From your reading of the financial statements for the first month, would you consider joining the company? Explain your answer. Limit your answer to financial considerations only.