3.Prepare relevant financial statements.

4. Provide a financial analysis with proper interpretation for gross profit and net profit and any other anomalies you discover (reasonable assumptions allowed).

Additional information: 1. 2. 3. 4. 5. The insurance policy has a one-year term beginning April 1, 2021. At that time, a premium of $6,960 was paid. The equipment was acquired on December 1, 2018, and has an estimated useful life of eight years. The vehicles were acquired on December 1, 2018, and have an estimated useful life of six years. The company uses straight-line depreciation. A physical count shows $300 of supplies on hand at November 30. The bank loan payable has a 7% interest rate. Interest is paid on the first day of each following month and was last paid on October 1. Deposits of $1,300 each were received for advance tour reservations from 10 school groups. At November 30, all of these deposits have been earned. Employees are owed a total of $490 at November 30. A senior citizens' organization that had not made an advance deposit took a river tour for $1,130. This group was not billed until December for the services performed. The company made a sale to Bailey Blue for $5345 for a corporate event to be held on December 15th. A 65% deposit was paid November 16th. Additional advertising costs of $270 have been incurred, but the bills have not been received by November 30. On November 1, the company paid $2,620 rent in advance for November and December. Income tax payable for the year is estimated to be an additional $330 beyond that recorded to date. 6. 7. 8. 9. 10. 11. The following is Calgary Leisure's unadjusted trial balance at its year end, November 30, 2021. The company adjusts its accounts annually. Credit Debit $17,200 8,100 1,020 2,620 6,960 12,600 $ 3,150 154,200 Cash Accounts receivable Supplies Prepaid rent Prepaid insurance Equipment Accumulated depreciation-equipment Vehicles Accumulated depreciation-vehicles Accounts payable Deferred revenue Bank loan payable, due 2024 Common shares Retained earnings Fees earned Salaries expense Repairs and maintenance expense Rent expense Interest expense Advertising expense Income tax expense 51,400 1,990 13,000 48,000 10,000 27,100 142,880 63,700 11,430 14,410 3,080 700 1,500 $297,520 $297,520