On 14 February 20X6, Dana Samuels e- mailed you, Chris Morgan, a public accountant. Samuels is a famous female Canadian hockey player. In anticipation of retirement from competitive ice hockey following the current season, Samuels incorporated Women’s Hockey Power (WHP). WHP has established an excellent reputation for its coaching clinics aimed toward women’s hockey and the quality of the Deek line of women’s hockey equipment and accessories that it manufactures. In fact, the company has been so successful that Samuels hopes to go public when volumes are higher. 

Another firm will audit WHP’s financial statements,  but Samuels would like you to analyze the attached information. She really does not have much time to discuss financial information at the moment, as hockey season is in full swing. She has, however, attached the partial 31 January unaudited financial statements  (Exhibit 1) and some supporting explanations (Exhibit2). Samuels’s request: Look at this financial information and correct anything that might be misstated. If there are things you can’t correct or I’ll need to deal with later, let me know what will have to be done. Please provide corrected GAAP- compliant financial statements  and the necessary information. If you adjust any of the numbers in these financial statements,  I would like you to provide me with the supporting journal entries. I did take a little accounting once, and it will help me understand what you’ve done. And if there are any other issues I need to deal with before taking WHP public, please provide an explanation and your advice. 

Required:
Prepare a report and revised financial statements  for Samuels.