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prepare the closing journal entries and the post- closing trial balance

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no idea about this;Muskoka Internet Caf?;Muskoka Internet Caf? (MIC) was established and incorporated on January 1, 2012, by Bruce Waiters and has;just completed its third year of operations with a year end of December 31. Bruce was born in the Muskoka;region and aft;er completing his university degree in history, he decided to return to the area to set up his own;business. Aft;er months of research, Bruce decided to open his business along the Gravenhurst waterfront.;His research showed that there was tremendous potent;ial in that area, especially;during the summer tourist;season, for a small caf? with an Internet service. Local cottagers without service suggested that they would;fi;nd it appealing to check their email while shopping in the trendy area.;MIC runs out of 90 square metres (1,000 square feet) of space. It has one entrance into the caf? and;patio doors leading out to a deck that overlooks the water. MIC pays $5,000 per month for the rental of the;space. Bruce was able to negotiate with the landlord and was not required to pay the fi;rst month?s rent in;advance. All of his rental payments are current and up to date. For the last two years, MIC has had a very;reliable accountant prepare its year-end fi;nancial statements and everything has been correct. Th;is year;MIC?s accountant retired and Bruce did the best he could recording his own fi;nancial information. For the;information he was not sure about, he kept all of the required supporting documentation. Bruce hired your;accounting fi;rm to prepare his fi;nancial statements for the year and you were assigned the job. Bruce sup-;plied you with his unadjusted trial balance and the information in Exhibit I to assist you.;Additional information;?;Th;e amount currently sitting in prepaids arose due to the insurance policy last year. Bruce didn?t;know how to correct it, so he left;it. Th;is year?s insurance policy was purchased on November 1 for;$9,000. Th e policy runs from November 1 to October 31 of each year.;?;Bruce has a note that he owed $900 in wages to his employees for the period ending December 31.;?;Th;e loan was incurred when the caf? was opened. Th e loan carries an interest rate of 8%. Th;e interest;is payable two months aft;er year end and the principal is due in 2018.;?;MIC will sometimes book special events with small organizations that are allowed to pay aft;er the;event has taken place. On December 29, a small company had a gathering at the caf?. Th;e company;was billed $1,089 and has 30 days to pay it. Bruce has not yet recorded this in his fi;nancial records.;?;MIC declared a dividend of $5,000 on December 30.;?;Bruce didn?t know how to record amortization for the year and so left;it for you to record. Amortiza-;tion for all assets is charged using a straight-line me;thod by taking the cost of the asset and dividing;it by its expected useful life. Th;e assets have expected useful lives as follows;? Computers: 5 years;? Caf? equipment: 10 years;? Furniture and fi xtures: 20 years;?;Th;e information shows that MIC owes $400 for a telephone bill and $300 for electricity for December.;Th;ese amounts have not been recorded yet.;Required;Based on the information you have, prepare the adjusting journal entries, an adjusted trial balance, the;statement of earnings (income statement), statement of fi;nancial position (balance sheet), and statement of;retained earnings. Aft;er you have completed the statements, prepare the closing journal entries and the post-;closing trial balance. Ensure you show all of your work, and prepare proper journal entries and properly;formatted fi;nancial statements.

 

Paper#24289 | Written in 18-Jul-2015

Price : $32
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