BUS 285 - Lab 3 Part 1 Summer 2020 After preparing the adjusting entries for Economy Small Engine Repair (ESER), you prepared the following adjusted trial balance: Economy Small Engine Repair Ltd. Adjusted Trial Balance December 31, 2016 C. Dr. $15,750 2,600 750 800 6,000 $250 2,500 Account Name Cash Accounts receivable Inventory Prepaid insurance Repair equipment Accumulated depreciation - baking equipment Computer equipment Accumulated depreciation - computer equipment Accounts payable Income tax payable Unearned revenue Bank loan payable Common shares Repair revenue Advertising expense Cost of goods sold Depreciation expense Income tax expense Insurance expense Interest expense Utilities expense Wages expense 167 235 3,500 500 5,000 8,000 18,250 250 1,750 417 3,500 400 50 235 900 $35,902 $35,902 Tasks 1. Based on the adjusted trial balance, you decided to prepare ESER's first set of financial statements in accordance with Accounting Standards for Private Enterprises (ASPE). You plan to apply what you have learned in BUS 285 to prepare a classified statement of financial position, multiple step income statement and statement of retained earnings (in good form). As you have not yet studied the cash flow statement, you decided to leave the preparation of the cash flow statement for later in the semester. 2. Now that you have prepared ESER's first set of financial statements, you need to prepare the closing entries (in good form) to prepare the accounting records for 2017. 3. In early February, your BUS 285 instructor discussed periodic and perpetual inventory systems. To date, you have been using a periodic inventory system for ESER. You decided to review your BUS 285 notes and prepare a summary of how a perpetual inventory system differs from a periodic inventory system and which type of inventory system would be more appropriate for Bob to use at ESER. 4. In BUS 285, you discussed the specific identification, FIFO and average cost inventory cost determination methods. You decided to make some brief notes explaining each of the methods and when they should be used and then decide on the most appropriate method to recommend to Bob for ESER. BUS 285 - Lab 3 Part 1 Summer 2020 After preparing the adjusting entries for Economy Small Engine Repair (ESER), you prepared the following adjusted trial balance: Economy Small Engine Repair Ltd. Adjusted Trial Balance December 31, 2016 C. Dr. $15,750 2,600 750 800 6,000 $250 2,500 Account Name Cash Accounts receivable Inventory Prepaid insurance Repair equipment Accumulated depreciation - baking equipment Computer equipment Accumulated depreciation - computer equipment Accounts payable Income tax payable Unearned revenue Bank loan payable Common shares Repair revenue Advertising expense Cost of goods sold Depreciation expense Income tax expense Insurance expense Interest expense Utilities expense Wages expense 167 235 3,500 500 5,000 8,000 18,250 250 1,750 417 3,500 400 50 235 900 $35,902 $35,902 Tasks 1. Based on the adjusted trial balance, you decided to prepare ESER's first set of financial statements in accordance with Accounting Standards for Private Enterprises (ASPE). You plan to apply what you have learned in BUS 285 to prepare a classified statement of financial position, multiple step income statement and statement of retained earnings (in good form). As you have not yet studied the cash flow statement, you decided to leave the preparation of the cash flow statement for later in the semester. 2. Now that you have prepared ESER's first set of financial statements, you need to prepare the closing entries (in good form) to prepare the accounting records for 2017. 3. In early February, your BUS 285 instructor discussed periodic and perpetual inventory systems. To date, you have been using a periodic inventory system for ESER. You decided to review your BUS 285 notes and prepare a summary of how a perpetual inventory system differs from a periodic inventory system and which type of inventory system would be more appropriate for Bob to use at ESER. 4. In BUS 285, you discussed the specific identification, FIFO and average cost inventory cost determination methods. You decided to make some brief notes explaining each of the methods and when they should be used and then decide on the most appropriate method to recommend to Bob for ESER