ACCOUNTING Below is review of the books and records at December 31 for East West College. The review has identified the matters that may need addressing. Record any adjustments required to complete the year end on General Journal. Additional documents are on the next page. Cash Term Deposit Accounts Receivable Inventory Deposit Prepaid Building Computer Computer Furniture & Equipment Leasehold Improvements Gain on Sale Professional Fees Deferred Revenue Corporate Taxes Income Taxes A stale dated cheque (stop payment in reality) for $10500 recorded as Miscellaneous Expenses. The fee related to an exempt for GST purposes Key Man Life Insurance Policy. One-month interest has been earned but not received $3,000 on ACCUTAX Consultants may be uncollectable $6,300 on REAL AMUSEMENT Ltd. May be uncollectable pending bankruptcy 225 booklets SAGE 50 & 160 texts OF QUICKBOOKS Verified by Count on December 18 and reconciled on contractor Payments used to prepare staff and contractor payments. Valuation basis used last year was FIFO This remaining deposit was for a new car for the Company but ARIF C. has instead decided to pay the remaining balance and keep the car for herself. Memberships and insurance (see G/L) need to be reviewed. Round each to the nearest month. Record 11 months depreciation of $12,736 (5% declining balance) (300,000-22,125) X 5%X11/12-12736 Computer erroneously recorded in Furniture & Equipment (Account 160) Record Depreciation for Computer (50% straight-Line) Record Depreciation (20% Declining Balance) for the prior year and (1/2 X20% Declining Balance) for the current year. Amortize Leasehold Improvements for December 20XX 1 month of 5 Year lease Properly record the 2 transactions recording any related fees as Professional Fees. Note the lawyer paid out the mortgage payable (a small amount of interest was also occurred). The entire investment of $80,000.00 was disposed of. Accrue accounting fees as per memo #125 Record the deferred revenue for classes paid but untaught (see Pages 15 and 16). See current invoicing for pricing Move $200 late fee to bank charges & interest Record $79,300 for taxes for the current year (P/S: ACCOUNTING STUDENTS ONLY) 47 TO: EAST WEST COLLEGE 3880 29 St NE Calgary, AB TIY 6B6 Accounting FOLIO: 1130-20 November 30, 20XX STATEMENT OF ADJUSMENTS Cheque received from Purchaser's Lawyer $1,103,300 Adjustments Principal & Interest to closing date $101,200 Legal Fees $2000 GST thereon $ 100 $ 2,100 Total Disbursements Net Balance from Trust Balance -Cheque Attached $ 103,300 $1,000,000 STOCK BROKER ALBERTA TO: EAST WEST COLLEGE 3880 29 St NE Calgary, AB TI1Y 6B6 STATEMENT OF ADJUSTMENTS Proceeds from Sale of Investment Less: Brokerage Costs (Preferred Rate) Including GST Balance from Trust Balance -Cheque Attached $ 54,200.00 $ 4,200.00 $ 50,000.00 SERVING UTOPIA FOR OVER 50 YEARS MEMORANDUM TO: BILL BUGNAY FROM: ARIF CHOWDHURY MEMO #125 December 18, 20XX Estimated Professional fees (complete the accounting & do the tax return) are $2,000 Thanks ARIF NAME: 48 GENERAL JOURNAL- PAGE 230 DATE 20 Account Title and Explanation XX REF DEBIT CREDIT 49 Training Income Customized General Total Income Cost of Service Provided Instructional Materials Contract Instructors Travel Total Cost of Services Provided Gross Margin Expenses Advertising & Promotion Amortization Bad Debts Bank Charges & Interest Donations Insurance Interest on L/T Debt Meals & Entertainment Memberships Occupancy Costs Professional Fees Repairs & Maintenance Wages and Benefits Total Expenses Net Income from operations Non-Operating Income Interest income Gain/Loss on Disposal Total Non-Operating Income EAST WEST COLLEGE INC. INCOME STATEMENT For the year ending December 31, 20XX Net Income before Income Taxes Income Taxes Net Income for the year NAME: 51 Assets: Current Cash & Equivalents Accounting receivable & accrued Less: Allowance for doubtful Inventory Prepaid Amounts Total Current Assets Fixed: Furniture & Equipment Less: Amortization Leasehold Improvements Less: Amortization Total Fixed Assets Liabilities: Current Accounts payable Deferred Revenue Shareholder Loans Total Current Liabilities Shareholders' Equity Share Capital Common Preferred Total Share Capital Retained Earnings Beginning of Period Add: Net Income Less: Dividends End of Period Total Shareholders' Equity NAME: EAST WEST COLLEGE INC. BALANCE SHEET As of December 31, 20XX 52 ACCOUNTS RECEIVABLE SUSIDIARY LEDGER Limerick CORPORATION ACCOUNT NO. B4 DATE EXPLANATION REF DEBIT CREDIT Nov 30 Carried Forward C/F DR/CR DR BALANCE 0 00 Zara INC. ACCOUNT NO. D1 DATE EXPLANATION Nov 30 Carried Forward REF DEBIT C/F CREDIT DR/CR BALANCE DR 0 00 New Gen LIMITED ACCOUNT NO. H2 DATE EXPLANATION Nov 1 Carried Forward REF DEBIT C/F CREDIT DR/CR DR BALANCE 0 00 AccuTAX CONSULTANTS DATE EXPLANATION Nov 30 Carried Forward Sleep Well BEDDING CORP DATE EXPLANATION Nov 30 Carried Forward ACCOUNT NO. L3 REF DEBIT C/F CREDIT DR/CR DR BALANCE 8,400 00 ACCOUNT NO. M5 REF DEBIT C/F CREDIT DR/CR BALANCE DR 000 ACCOUNT NO. R8 REF DEBIT CREDIT DR/CR BALANCE DR 6,300 00 Real Amusements LTD. DATE Nov 30 EXPLANATION Carried Forward C/F ACCOUNTS PAYABLE SUSIDIARY LEDGER Oncolytic Biotech Ltd. DATE Nov 30 EXPLANATION Carried Forward REF DEBIT C/F ACCOUNT NO. EE9 CREDIT DR/CR BALANCE CR 0 00 D2C CORPORATION ACCOUNT NO. LL7 DATE EXPLANATION Nov 30 Carried Forward REF DEBIT C/F CREDIT DR/CR BALANCE CR 12,600 00 High Arctic LIMITED DATE EXPLANATION Nov 1 Carried Forward REF DEBIT C/F CREDIT ACCOUNT NO. MM2 DR/CR BALANCE CR 0 00 HR ACCOUNTANT LTD. DATE EXPLANATION Nov 30 Carried Forward ACCOUNT NO. PP3 REF DEBIT C/F CREDIT DR/CR BALANCE CR 000 Enbridge INC. ACCOUNT NO. RR6 DATE EXPLANATION Nov 30 REF DEBIT CREDIT DR/CR BALANCE Carried Forward C/F CR 0 00 DATE Mercer INC. EXPLANATION ACCOUNT NO. WW2 REF DEBIT CREDIT DR/CR BALANCE Nov 30 Carried Forward C/F CR 320 00 46