Mark Wilson resigned from his corporate job on December 15, 2021, to start his soleproprietorship, called Wilson's Consulting.He started on January 1, 2022. He employed threeemployees to get started. He was handling the administrative functions on his own but soonrealized that he needed assistance, so he invited applications for an accounting assistant.Heinterviewed several applicants on May 15, 2022, and decided on employing Sharon Mighty, whocame highly recommended by an associate. Sharon had a human resource diploma with verylittletraining inaccounting, butshehadavibrantpersonality andwasateam player.

Sharon was responsible for recording all transactions and extracting the financial reports fromthe QuickBooks software system to be sent to the external accountants for tax purposes.Theexternal accountants charge by the hour, so Mark had indicated to Sharon, that a clean set ofreportsenttotheaccountantswouldminimizethelevelofworkrequiredbytheaccountantsandtherefore minimize the cost.He had also requested that all reports be approved by him prior tobeingsent to theaccountants.

Required

You are required to Build a report to Mark Wilson.

>Included in this report should be thecorrected trial balance,

> the income statement,

>the statement of owner's equity, and the balancesheet.The accounting framework should also be discussed, with any areas of concern beinghighlighted.

OnJanuary28,2023,SharonextractedandsentthefollowingtrialbalancetoMarkforhisreview.

Wilson's ConsultingTrialBalance

AsatDecember31,2022

	Dr	Cr
Cash	68,000
Short TermInvestments	17,000
AccountsReceivable	24,000
AllowanceforDoubtfulAccounts		7,000
Supplies		6,500
Inventory	27,300
PrepaidExpense		2,500
Land	125,000
Buildings	190,000
AccumulatedDepreciation-Buildings		35,000
Equipment	90,000
AccumulatedDepreciation-Equipment		20,000
AccountsPayable		14,600
BankLoan		28,700
UnearnedRevenue		5,300
NotesPayable(DueAugust1,2023)		76,000
MortgagePayable		200,000
Capital		60,000

SalesRevenue		245,600
CostofGoodsSold	84,300
RentExpense	15,000
SalariesExpense	25,300
TravelExpense	10,200
MaintenanceExpense	9,700
UtilitiesExpense	7,800
InterestExpense		1,200
DepreciationExpense	8,800
Total	702,400	702,400

It was also noted that the following journal entries were completed by Sharon on the followingdates.Thesejournal entries wererecommended tobereviewed.

Date	AccountandExplanation	Debit	Credit
Dec12,2022	Cash	6,500
	Supplies		6,500
	Torecordsuppliespurchasedforcash
Dec15,2022	AccountsPayable	1,200
	InterestExpense		1200
	Torecordinterestexpenseowing
Dec21,2022	Cash	2,500
	PrepaidExpense		2,500
	Torecordrentexpensepaidinadvance