AGUAMAINT, INC.

Solution to Requirement 2

Adjusting/Correcting JEs and Tax Calculations

Based on the information received from Jerry Loos, you have determined that to be in accordance with U.S. GAAP, the following adjusting and correcting entries were needed. After completing your trial balance with these data, (1) correct the balance sheet and statement of comprehensive income, (2) "prepare" a statement of cash flows using the direct method, (3)" prepare" a statement of changes in stockholders' equity, and (4) draft a complete set of financial statement disclosure notes. All disclosure notes must be supported by thoughtful analyses and/or authoritative sources. The FASB Accounting Standards Codification is considered to be the authoritative source for financial reporting in the United States. Textbooks may be useful, but should not be quoted as authoritative sources.Be prepared to convince Nick Riley and Ray Ballard that your results will not jeopardize Aguamaint's loan application.