1. Black and White Creamery Inc. (BWCI), a shop that specializes in ice creams that contain activated charcoal and Tahitian vanilla, has hired you as an accountant. You have been provided with the following alphabetical list of accounts and their balances as at June 30, 2020:

Account Balance Accounts payable $27,600 Accounts receivable 1,900 Accumulated amortization trademark 25,000 Accumulated depreciation building 56,400 Accumulated depreciation equipment 42,200 Bank indebtedness 27,100 Building 282,500 Common shares 120,000 Deferred revenue 3,300 Equipment 104,000 Inventory 55,400 Land 78,800 Mortgage payable (Note 2) 275,000 Prepaid expenses 900 Trademark 125,000 Note 1: All accounts have normal balances. Note 2: According to the agreement with its bank, BWCI is required to make principal payments on the mortgage payable totaling $11,000 during the year ending June 30, 2021. Note 3: BWCI had retained earnings of $0 as at June 30, 2019. Note 4: According to the statement of income, BWCI reported a net income of $71,900, for the year ended June 30, 2020. No cash dividends were declared or paid. 2020 Megan Costiuk

You have been instructed to prepare BWCIs classified statement of financial position (in good form). Please ensure that you provide detailed supporting calculations and round all amounts to the nearest dollar.

2. You have been asked to briefly explain the cost constraint as described in the Conceptual Framework.

3. You have been asked to briefly define the enhancing qualitative characteristics of timeliness and understandability according to the Conceptual Framework. You are also expected to indicate whether it is necessary for financial information to satisfy all of the fundamental and enhancing qualitative characteristics or if tradeoffs are possible and briefly explain your answer.

4. You have been asked to briefly explain the going concern assumption and describe how an entitys financial statements would differ if the going concern assumption were no longer valid.