Case #1 Due May 23, 2023 Mark Wilson resigned from his corporate job on December 15, 2021, to start his sole proprietorship, called Wilsons Consulting. He started on January 1, 2022. He employed three employees to get started. He was handling the administrative functions on his own but soon realized that he needed assistance, so he invited applications for an accounting assistant. He interviewed several applicants on May 15, 2022, and decided on employing Sharon Mighty, who came highly recommended by an associate. Sharon had a human resource diploma with very little training in accounting, but she had a vibrant personality and was a team player. Sharon was responsible for recording all transactions and extracting the financial reports from the QuickBooks software system to be sent to the external accountants for tax purposes. The external accountants charge by the hour, so Mark had indicated to Sharon, that a clean set of report sent to the accountants would minimize the level of work required by the accountants and therefore minimize the cost. He had also requested that all reports be approved by him prior to being sent to the accountants. On January 28, 2023, Sharon extracted and sent the following trial balance to Mark for his review.

Wilsons Consulting Trial Balance As at December 31, 2022

	Dr	Cr
Cash	68,000
Short Term Investments	17,000
Accounts Receivable	24,000
Allowance for Doubtful Accounts		7,000
Supplies		6,500
Inventory	27,300
Prepaid Expense		2,500
Land	125,000
Buildings	190,000
Accumulated Depreciation - Buildings		20,000
Accounts Payable		14,600
Bank Loan		28,700
Unearned Revenue		5,300
Notes Payable (Due August 1, 2023)		76,000
Mortgage Payable		200,000
Capital		60,000
Sales Revenue		245,600
Cost of Goods Sold	84,300
Rent Expense	15,000
Salaries Expense	25,300
Travel Expense	10,200
Maintenance Expense	9,700
Utilities Expense	7,800
Interest Expense		1,200
Depreciation Expense	8,800
Total	702,400	702,400

It was also noted that the following journal entries were completed by Sharon on the following dates. These journal entries were recommended to be reviewed.

Date	Account and Explanation	Debit	Credit
Dec 12, 2022	Cash	6,500
	Supplies		6,500
	To record supplies purchased for cash
Dec 15, 2022	Accounts Payable
	Interest Expense	1,200
	To record interest expense owing		1200
Dec 21, 2022	Cash
	Prepaid Expense	2,500
	To record rent expense paid in advance		2,500

Required You are required to prepare a report to Mark Wilson. Included in this report should be the corrected trial balance, the income statement, the statement of owners equity, and the balance sheet. The accounting framework should also be discussed, with any areas of concern being highlighted.

Explain what you will examine in the case.

Provide background information and the most relevant facts. Isolate the issues.

Isolate the sections of the study you want to focus on. In it, explain why something is working or is not working

Offer realistic ways to solve what isnt working or how to improve its current condition.

Talk about the strategy that you should choose. Explain why this choice is the most appropriate.

Explain how to put the strategy into action. Be sure to set clear goals, determine roles and responsibilities, how the plan is to be monitored and what success looks like.