Welcome back In the previous task you learned how to set up

a Microsoft office 3 65 account and how to open a new

workbook with Microsoft Excel in this task.
We will start by looking at the assumptions for our financial
statement and create the transactions page.
But before we get started, that's first name this document
by clicking on here where it will say probably book one
for you and we'll rename the file as financial statement
and just press enter the sample scenario we will use
for this project is that we'll be creating a financial
statement for Joe's lawn service which is a small company
that is three months old and provides bond maintenance
services to houses.
And I have us to hear a set of assumptions that we're going
to use throughout the project.
And don't worry you don't have to write these down but I just
have them written down here as a reference.
So these assumptions are that jones lawn service has
five employees.
We are one of those five employees, Joe's lawn services
in the first three months of providing lawn maintenance
services.
And then the fourth one is that the owner joe invested $2000
of his own money into the startup of this company.
Since Joe's lawn service is a pretty small company, they keep
track of their transactions in the transactions page
and these transactions will then populate the profit and loss
statement to summarize the monthly profits and losses
for different categories of transactions.
Let's see how we would populate the transactions page.
Each transaction will have a category, date, month amount
and description.
So we'll start by creating the title and headers
for this page And sell a one right transactions as the title
for the worksheet.
And since it is a title will want to bold it and then
increase the size to around 20.
Perfect.
We could double click to the right of each column where
we have the double arrow to adjust the width of the column
with the text.
Then the headed for the transactions are going to be category
which will right In cell a two date And cell b. two months
and cell C2 and then amount And cell D two.
And we can highlight these headers also bowled them and then
maybe adjust the columns for them to be a little wider
and then for we'll add it actually an additional column E
for the description of the transaction.
So here phrase transaction will have a description
and will want to have the column pretty wide to be able
to write out that description.
And if you like you can also center these headers
by highlighting the cells and then in alignment we
will select center.
The transactions will be classified by category in the profit
and loss statement.
So when you put the transactions you will want to group
similar transactions into the same category and they
will appear together.
The amount for each transaction will be positive if it is
money that was received such as providing gardening services
or negative for money that was spent.
And the cells on the table can be formatted for appearance
which will make the transactions easier to track.
This is definitely an optional step but I think it's really
useful to take the time to format the cells and have
the spreadsheet as a template for any future statements
you want to create if you would like pause the video and take
a moment to format the cells to your liking and come back
when you're done.
Let's start inputting our transactions.
The first transaction will be the purchase of one lawnmower
which is an expense and will therefore have a negative value.
The date in cell B3 will write as January one
of 2021 And the month will write these months with a
three letter abbreviation.
So well.
Right Jan as for the amount the lawnmower cost $500.
So we will put this value as negative 500.
And since all of these values are going to be in U. S.
Dollars, that's actually changed this column to a currency.
So we'll click where it says we're on the label for column D.
And in general you will select currency.
And then since the values are going to be pretty large we
can remove the two decimal places by clicking on the decrease
decimal icon twice.
All right and then for the description what we can right here
is purchase of one lawn mower and then all we have left is
the category which we could write as purchase equipment.
And remember that for similar transactions um will have
the same category names.
So for other equipment purchases we would write the same
category.
Here is a list of additional transactions you will want
to include in the transactions page, pause the video and take
a moment to input the following transactions in the table
and come back when you're done.
Great job.
Your transactions table should look like this one
with some variations.
Perhaps some key points to remember is that transactions were
money is spent will always have a negative value.
So this would apply to the purchase of the van
and to the employee's salaries for example on the other hand
transactions for money received such as the income
from gardening services will have a positive value.
Similar transactions should have the same category name.
So for now the court categories we have for our transactions
are purchase of equipment, vehicle, services and salaries
for the event that was purchased in january that
could have been possibly put as purchase of equipment or it
could have its own category of vehicle.
Both options I think here would be fine.
Excellent.
Well on this task we looked at the assumptions for our
financial statement and completed the transactions page
of our statement.
In the next task you will learn how to set up the profit
and loss statement to summarize the monthly transactions
by category.