4:30 < Case 1 Instructions and Tips.docx Instructions: Prepare T-account entries for all appropriate (see tips below) B/S and I/S accounts to obtain a 3,000 debit balance in the C&CEMain T-account. Prepare the T-accounts under the Direct method approach. You need to email me a MSWord file. Tips: 1. You need T-accounts for: a) Cash and Cash Equivalents-Main (C&CEM) that starts with a $1,000 debit; and b) separate C&CEs for Operating items, another for Investing, and another for Financing. After you are done posting entries that explain the changes in the balance sheet accounts, you close these 3 into C&CEM; the balance in C&CEM should be $3,000 after all said and done. 2. In addition to the (4) C&CE-Main; C&CE- operating; C&CE-investing; and C&CE-financing, you will need 18 T-accounts for: Balance sheet side (9) - A/R; A/P; Inventory; Prepaid Exp.; Income Tax/P; Deferred Tax/P; PP&E; A/D - PP&E; and R/E. The accounts for Due from Assoc. and Share Capital did not have entries. On the income statement side (8) - Sales; investment income (the cash goes to C&CE-Inv. T- account); Depr. Exp.; Audit fees; Tax exp.; S&A Exp.; Interest Exp.; and COGS (credit to Inventory). One (1) more -If you want to do everything by the book, you'll close all Income Statement accounts into Income summary and then close I/S into R/E. 3. One example [Sales T-account]- sales were credited 30000 and A/R was debited 30000. Next, cash (C&CE-Oper.) was debited 27500 and A/R was credited 27500. Next, close $30,000 (debit it) and credit Income summary. 4. When you get through all the entries using the data, you'll have a 3500 debit balance in C&CE- 000 Dashboard Calendar To Do Notifications Inbox