Use the information about Wilfred's Appliance Town Ltd. (ATL) provided in Problem P3-22 to do the following:

Question:

a. Prepare all necessary transactional journal entries for the year ended August 31, 2017.

Provide an explanation for each journal entry.

b. Prepare T-accounts and post each journal entry to the appropriate T-accounts.

c. Prepare and post adjusting journal entries to their appropriate T-accounts.

d. Prepare a trial balance as of August 31, 2017.

e. Prepare a balance sheet for ATL as of August 31, 2017 and an income statement and statement of retained earnings for the year ended August 31, 2017.

f. Prepare the closing journal entry and post the closing entry to the appropriate T-accounts.

g. Prepare a trial balance as of August 31, 2017, after the closing entry has been prepared.

h. Wilfred is considering expanding ATL to include a wider range of products. Wilfred has approached you about purchasing common shares of ATL to help finance the expansion. Based on your examination of the statements, what can you tell about ATL that would be useful to your decision to invest? Also, list five questions you might ask Wilfred that would help you use the financial statements more effectively.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...