Financial Analysis of Company 18840507 for the Month of May

Running head: ACCOUNTING AND INFORMATION SYSTEM
Accounting and Information System
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1ACCOUNTING AND INFORMATION SYSTEM
Table of Contents
Introduction................................................................................................................................2
Financial analysis.......................................................................................................................2
References..................................................................................................................................6
Appendix....................................................................................................................................7

2ACCOUNTING AND INFORMATION SYSTEM
Introduction
This motive of the following report is to make a vivid analysis and evaluation of the
financial performance of the company 18840507 for the month of May. It has been found that
the company had various transactions for the month of May and journal entries have been
passed along with the preparation of the income statements and the balance sheet. The
company of 18840507 has been engaged in the operation of selling and buying of inventories.
There has been preparation of the profit and loss account and a balance sheet for the month of
May in the organization (Levinson 2014). There is Trial Balance has also been also prepared
in the organization which are shown in the Appendix which is given below.
Financial analysis
During the year the record of the transactions that are made by necessary journal
entries passing in the month of May. After the journal entries the transactions are then
transferred to the various ledger accounts (Grant 2016). For confirming the mathematical
accuracy and balance of the debit and the credit side of the transactions of the organization
the trial balance has been prepared.
The trial balance which is the statement where the debit and the credit balances are
matched in order to find out the mathematical accuracy of the bookkeeping process. The trial
balance also helps in pointing out the errors of commission and omission that have been
occurred in the book keeping process (Rothaermel 2015). While analyzing the trial balance it
can be found out that amount of sales in the credit side is $9829. Following the sales there are
direct expenses that includes the cost of goods sold and the expensed related to the Motor
Vehicles that has taken place in the month of May. The amount of cost of goods sold is $
5,932 and the motor vehicle expense is $ 531.The owners capital equity amounts to $