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Trial Balance as at December 31, 2019 - Draft

Dr.

Account Description Debits Credits Cr.

Cash 62,000 -

Accounts receivable 10,000 -

Short-term investments - Nestle Foods Inc. 30,000 - #2 -

PP&E - Equipment and furniture 271,000 -

Accum Dep - Equipment and furniture - 71,000 Dr.

PP&E - Computer equipment 15,000 - Cr.

Accum Dep - Computer equipment - 6,738

PP&E - Vehicles - -

Accum Dep - Vehicles - -

Accounts payable - 20,000

Income tax payable (receivable) 10,000 -

Bonus payable - 10,000

Loan payable - Conexus Credit Union - 282,720

Common shares - 2,000

Retained earnings - Jan 1, 2019 - 16,152

Dividends declared 100,000 -

Food sales - 400,000

Dividend income - 6,000

Gain on the sale of assets - 7,340

Cost of goods sold 80,000 -

Lease expense 36,000 -

Advertising 20,000 -

Meals and entertainment 5,000 -

Legal and accounting fees 5,000 -

Loan interest - Conexus Credit Union 22,950 -

Depreciation - -

Salaries and wages 140,000 -

Independent contractors - Sales reps 15,000 -

Income tax expense - -

821,950 821,950

Required:

Trial Balance (Dec 31, 2019) Draft and Final

Journal Entries (Dec 31, 2019) - Prepare the following journal entries needed to complete

Menchies Inc. (Menchies) financial statement (journal entry template provided).

o Post tax return entry #1 (Depreciation expense) -

o Post tax return entry #2 (Income tax expense) -

Financial Statements (Dec 31, 2019) Draft and Final- Statement of Financial Position, Statement

of Income and Statement of Retained Earnings. (Note - Final statements need to be updated for

journal entries).

CCA Support - Show support for the CCA number used

Manual Calculation - Prepare a manual

1) NI Per F/S

2) NIFT

3) TI

4) Taxes Payable

5) Taxes Owing

a) Lease expense - $36,000:

During 2019 Menchies made $36,000 of lease payments for their 1,500 square foot business

space.

b) Advertising - $20,000:

The breakdown of the $20,000 is as follows:

$5,000 was spent on sponsorship of events to have the businesss name used.

$10,000 was spent on social media advertisements and promotion.

$3,000 was spent on giveaways (food).

$2,000 was paid to registered charities during the year:

Description Amount

($)

5-days for the Homeless - Hill BSS (registered charity) 1,000

Massey School Playground (registered charity) 1,000

c) Meals and Entertainment - $5,000:

The breakdown of the $5,000 is as follows:

Description Amount

($)

Saskatchewan Roughrider Season Tickets (Amanda, Alexis, Terry and Vendors attend games) 3,000

Staff Holiday Parties and Staff Events 1,000

Client meals (Amanda, Alexis, Terry, Vendors) 1,000

d) Legal and accounting fees - $5,000:

Legal and accounting fees were for the preparation of the F/S and the previous corporate tax

return.

e) Loan interest Conexus Credit Union - $22,950:

Was paid in relation to general corporate borrowing