CH f Earnings Inely L04 1.42.43.44 Recording Adjusting and Closing Entries, Preparing a Statement o AP4-7 Earnings per Share, and Preparing a Statement of Financial Position (I Claudia Pederzolli is enrolled in a co-op program in accounting that provides an alternating study and work terms. For the second work term, Claudia was offered a position local branch of a CPA fim. After three weeks on the job, she was asked to assist her supevi preparing the financial statements of Sakura Ltd, a long-time client of the CPA firm, Cla provided with the following unodjusted trial balance for Sakura Ltd. as at December 31, 202 well as additional information to prepare the required financial statements: Credit Dobit s 247,000 485,000 60,000 500,000 Cash Accounts recevable Note receivable Property, plant, and equipment Accumulated depreciation Accounts payable Note payable Deferred rent revenue Contributed capital (100,000 shares) Retained earnings-January 1, 2017 Sales revenue Cost of sales Salaries expense Other operating expenses s 140.625 70.400 30,000 6,000 620,000 165,000 999,000 502,000 222,000 15,025 $2,031,025 $2,031,025 Additional information is as follows: a. The compang lent $60,000 to an emplogee on October 1,2017, and recorded the note receivable According to the terms of the note, interest at an annual rate of 5 percent will be paid when the note matures on March 15, 2019. b. The company borrowed $30,000 on December 1, 2017, and signed a note, payable at December 31, 2018. Interest on the note is 4 percent per year and is payable at the beginning of each mond starting January 1, 2018. c. A portion of the building was rented to Senecal Inc. on November 1, 2017, for three months for a total amount of $6,000. Sakura received the amount in cash from Senecal on that date and recorded it as deferred rent revenue d. Depreciation on the property, plant, and equipment was estimated at $15,625 for 2017 e. Dividends of $0.60 per share were declared in December 2017, payable January 15, 2018. f Sakura Ltd. is subject to an income tax rate of 30 percent. The compang will pay income taxes m March 15, 2018 Journal entries related to these events have not been recorded get. Required Assume the role of Claudia Pederzolli and answer the following requirements 1. Prepare the adjusting journal entries as at December 31, 2017, for items (a) through () above Create new accounts, if necessary. (Hint: complete (2) before making the adjusting entry related to item (O.) 2 Show the effects (direction and amount) of the adjusting entries on net earnings and cash. 3. Prepare a multiple-step statement of earnings for the uesr ended December 31, 2017. Sakura Lid did not issue or repurchase any shares during 2017 Prepare a classified statement of financial position as a Des Si, 2017 5. Prepare the closing entries at December 31, 2017 6. Compute the net profit margin ratio and the retum on eqaltr for 2017, and explain the meaning