2. Closing entries and financial statements (80 marks)

Entertainment Centre Ltd.

Income Statement

For the Year Ended March 31, 2017

(In thousands)

Net revenues$

Cost of goods sold

All other expenses

Net income

Entertainment Centre Ltd.

Statement of Retained Earnings

For the Year Ended March 31, 2017

(In thousands)

Entertainment Centre Ltd.

Balance Sheet

As At March 31, 2017

(In thousands)

ASSETS

Current

Cash

Accounts receivable

Inventories

Other current assets

Total current assets

Property and equipment, net

Other assets

Total assets

LIABILITIES

Total current liabilities

Total long-term liabilities

Total liabilities

SHAREHOLDERS EQUITY

Common shares

Retained earnings

Total shareholders equity

Total liabilities and shareholders equity

CLOSING ENTRIES:

DATE

ACCOUNTS

DEBIT

CREDIT

Retained Earnings

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S3-12 Entertainment Centre Ltd. reported the following data at March 31, 2017, with amounts adapted and in thousands: Retained earnings, March 31, $1,300 Cost of goods sold $126,000 2017 Accounts receivable 27.700 Cash 900 Net revenues 174,500 7,200 Property and equipment, net Total current liabilities 53 800 Share capital 26.000 All other expenses 45.000 Inventories 33.000 Other current asseto 4.800 Long term fiabilities 3.500 ther assets 24,300 Dividends You are the CFO responsible for reporting Entertainment Centre 125 ECL results. Use these this prepare ECL income statement for the year ended March 31, 2017 the statement cared amnings for the entended March 31 2017 and the classified balance sheet an March 31, 2017 Use the report format for Tom the balance sheet. Draw arrows linking the three statements to explain the information flows between the statements. Prepare closing entries S3-13 Use the Entertainment Centre Ltd. data in S3-12 to make the company's closing entries at March 31, 2017. Then set up a T-account for Retained Earnings and post to that account. Compare Retained Earnings ending balance to the amount reported on ECL's statement of retained earnings and balance sheet. Entertainment Centre Ltd. Income Statement For the Year Ended March 31, 2017 (In thousands) $ Net revenues Cost of goods sold All other expenses Net income