Income statement, retained earnings statement and classified balance sheet, each drawn from the Unit 6 worksheet and formatted to course conventions: AC114 Unit 7 financial statement preparation, finished. Searches like "ac 114 unit 7 assignment example", "ac114 unit 7 sample" and "ac114 unit 7 example" land here.
What a finished AC114 Unit 7 financial statement preparation looks like
Three statements, each opened by a heading of three centered lines: the company, the statement's title, and the period or date. The income statement covers the month ended on a stated date and lists revenues, then each expense, then net income. The retained earnings statement begins with the opening balance, adds net income, subtracts dividends declared, and ends on the closing balance. The balance sheet is dated to a single day and classified: current assets in order of liquidity, then property and equipment at cost less accumulated depreciation, then current liabilities, long-term liabilities and stockholders' equity. Dollar signs appear at the top of each column and beside each total; single rules mark subtotals and double rules mark final figures. Every amount can be found in the worksheet's adjusted columns. No sentence of interpretation appears anywhere.
How a AC114 Unit 7 example is structured
Order is dictated by dependency and graded as such. The income statement comes first because the retained earnings statement needs its bottom line, and the balance sheet comes last because it needs the closing retained earnings. That closing figure appears in exactly two places, at the foot of the second statement and in the equity section of the third, and graders check both. Within the balance sheet, classification follows the course text's categories, and equipment is presented as a three-figure block, cost, less accumulated depreciation, equals book value, rather than a single net number. Expenses usually follow chart order or descending size, whichever the section prefers. Every figure comes from the adjusted columns, never from the unadjusted trial balance, which is the most tempting shortcut. The statements end where the numbers end, with no conclusion after them.
Headings that name the time
For the month ended on the income and retained earnings statements; a single date on the balance sheet. The wording differs because the statements measure different things.
Income statement
Revenues, each expense on its own line, and net income double-ruled. Dividends appear nowhere on it.
Retained earnings carried across
Opening balance, plus net income, less dividends, equals closing balance, and that closing figure reappears to the dollar on the balance sheet.
A classified balance sheet
Current and long-term sections for assets and liabilities, with equipment shown at cost, less accumulated depreciation, equals book value.
Figures from adjusted columns only
Every amount traceable to the worksheet's adjusted trial balance, so a grader can tick each one against its source.
Where marks go in AC114 Unit 7
Figures taken from the unadjusted trial balance cost the most, since every adjustment from the previous unit is then missing and nearly every statement line is wrong. A closing retained earnings figure that differs between the second and third statements is the next loss, and it is often the symptom of a net income error upstream. Headings draw steady deductions in AC114: a balance sheet dated for the month ended, an income statement dated to a single day, or a company name missing. Dividends reported as an expense are marked wrong. Accumulated depreciation listed among liabilities, or equipment shown only net, loses points in most sections. An unclassified balance sheet when the prompt asked for classification costs a formatting share. Missing dollar signs and rules are small deductions, but graders apply them consistently.
Get a AC114 Unit 7 example written to your instructions
The Unit 6 worksheet you completed, or the figures your instructor provided, is the starting point; send it with the Unit 7 instructions and rubric. All three statements come back in 24-48h in the format your course expects. The first custom sample is free, with each figure ticked to its source column.
AC114 Unit 7 questions, answered
Why does the balance sheet get a single date when the others cover a month?
The income statement and the retained earnings statement measure activity across a span, so their headings name the period. The balance sheet reports what the business holds and owes at one moment, so its heading names that moment. Graders in AC114 check this wording because it tests whether the difference between flows and balances has landed.
Should dividends ever appear on the income statement?
No. Dividends distribute profit to owners after it has been earned; they are not a cost of earning it. In AC114 they appear only on the retained earnings statement, as a subtraction, and later close directly to retained earnings. A dividend shown among expenses understates net income and is marked wrong in every section that works with corporations.
Is interpretation expected alongside the statements?
Rarely in AC114, where the unit tests preparation. Some sections add a short question afterward, but the statements themselves are graded on accuracy and format. A paragraph of commentary will not rescue a misstated figure and occasionally costs points if it strays from the prompt. Where the rubric does request analysis, it usually names the specific ratio or comparison wanted.