Instructions: Your Job: a) Journalize the transactions; enter the opening balances for balance sheet accounts and post the transactions to the General Ledger.

b) Complete an inventory record using weighted average cost flow.

c) Prepare a Bank Reconciliation Statement and related journal entry; post above journal entry (a) to general ledger accounts.

d) Complete the 10-column worksheet, journalize and post the adjustments

e) Prepare the financial statements (multistep income statement, calculations of retained earnings and classified balance sheet) using ending account balances from ledger.

f) Calculate ratios and do simple analysis.

Transactions

Feb 1	Tees R Us decided to establish a petty cash fund for the office. A cheque #3355 of $500 was issued and cashed.

For the Feb. 1 transaction, change the cheque #3355 of $600 to $500.

Feb 7	Sold merchandise to Arrow, 800 units at $75 each with invoice #2341. The invoice terms were 3/10, net 30. Note: Update the Inventory Valuation Table after each sale

For the Feb. 7 transaction, delete the reference to "FOB destination"

Feb 25	The remaining balance of the petty cash account was $150. Total expenses incurred using the petty cash fund this month amounting to $345. In this amount, it includes the shipping cost incurred on Feb 7 in the amount of $55 and the other costs are for the office supplies expense. Prepare the entry to replenish the petty cash fund with Chq#3359 .

For the Feb. 25 transaction, change the remaining balance of the petty cash account of $266 to $150. Also change the total expenses incurred using the petty cash fund this month amounting to $345.

Bank Reconciliation

Feb 28	Service Charge	34.00		9,233.40
Feb 28	Interest		290.00	9,523.40

Change the $340 for the Bank Service charge to read $34.

General Ledger Accounts
Account:	Cash				GL No:	101
Date	Description	PR	DR	CR	Balance (DR or CR)
	Opening Balance				35,600.00	DR
Feb 1	Paid Chq#3354	GJ3		660.00	34,940.00	DR
Feb 1	Paid Chq#3355	GJ3		500.00	34,440.00	DR
Feb 12	Paid Chq#3356	GJ3		28,089.60	6,350.40	DR
Feb 15	Paid Chq#3357	GJ3		9,127.00	- 2,776.60	CR
Feb 17	Received payment	GJ3	58,200.00		55,423.40	DR
Feb 18	Paid inventory Chq#3358	GJ3		42,000.00	13,423.40	DR
Feb 20	Received payment	GJ3	3,200.00		16,623.40	DR
Feb 25	Petty Cash Chq#3359	GJ3		350.00	16,273.40	DR
Feb 28	Paid loan	GJ3		1,076.00	15,197.40	DR

For the Feb. 1 transaction, change the cheque #3355 of $600 to $500.

For the Feb. 25 transaction, change the cheque #3359 of $334 to $350.