Sheet 1: Case Introduction Case: Tees R Us Tees R Us, set up as a privately held corporation, operating as a 1-shirt retailer, of which 100% of the Common Shares are owned by Tamara Green. You were hired to account for transactions for the month of February 2021, complete month endprocessing, prepare the financial statements and perform a financial ratio analysis as of the end of that month. They use perpetual inventory system and use the weigted average method to determine value for the inventory. Its balance sheet as at January 31, 2021, is presented below. Assets Tees R Us Classified Balance Sheet As at January 31, 2021 Cash $35,600 Accounts Receivable 16,870 Merchandise Inventory 12,500 Prepaid Insurance 4400 Total Current Assets 69.370 Long-Term Assets Equipment 162,000 Accumulated Depreciation -$2.000 110.000 Total Assets $179,370 Liabilities Current Liabilities Accounts Payable $12,000 Unearned Revenue $9,000 Salaries Payable $5.700 Current Portion of Bank Loan 11.160 Total Current Liabilities $37.360 Non-Current Liabilities Non-Current Portion of Bank Loss 23340 Unearned Revenue $9,000 Salaries Payable $5,700 Current Portion of Bank Loan 11.160 Total Current Liabilities $37.860 Non-Current Liabilities Non-Current Portion of Bank Loan Total Liabilities Shareholders' Equity Common Shares Retained Earnings Total Shareholders' Equity Total Liabilities & Equity Notes Relating 23.840 $61,700 81,000 36.620 112.670 $179.370 to Balances: Although we are not asing special journals and subsidiary ledgers, we have provided the customer and supplier names and account balances for your reference below: Customers and balances Suppliers and Balances Columbia $3,200 Henley $0 Arrow $6,400 Als $7.500 Dickies $4,250 Martin $2,100 Fabrica Total $4,500 $12,000 Short Total $920 $16,870 The bank loan has an annual interest rate of 5% and has monthly principal payment of $930 The inventory figure includes 500 units purchased at $25.00 each The Chart of Accounts (GL no. is shown below Account Description Account F Account Description Account # no) is shown below: Account Description Account # Account Description Account # ASSETS REVENUE Cash 1 101 Sales Revenue Petty Cash 105 Sales Discounts 400 405 Accounts Sales Returns Receivable 110 and Allowances 410 Merchandise Interest Inventory 120 Revenue 420 Prepaid Insurance 125 Other Income 430 Equipment 140 EXPENSES Accumulated Depreciation Cost of Goods 145 Sold 500 Employee Benefits LIABILITIES Expense 510 Accounts Depreciation Payable 200 Expense 515 Interest Payable 205 Insurance Expense 520 Interest CPP Payable 220 Expense 525 Office Supplies El Payable 225 Expense 530 Income Tax Payable 230 Rent Expense 535 Salaries Salaries Payable 235 Expense 540 Unearned Bank Charges Revenue Bank Loan 240 Expense 545 Maintenance 245 550 SHAREHOLDERS' EQUITY Common Shares Retained Earnings 300 Expense Entertainment Expense Shipping Expense 555 560 305 Cash Over and Short 565