Cleaning Inc. is an office cleaning service and seller of cleaning supplies operating out of Burnaby. The founder, Mr. Clean is the president and owns 100% of the common shares. The companys yearend is December 31. The inhouse bookkeeper had a car accident and is unfortunately not able to prepare the 2019 financial statements. It is now January 2020 and you have been asked to make any required adjusting journal entries and prepare the 2019 financial statements for Clean Tech.

The unadjusted trial balance for Cleaning Inc. is contained in the appendix: The following information has been made available for you to make any required adjusting entries.

1. The following invoices were received in January 2020 and were not accrued in 2019.

January 2020 electricity bill $1,000

December 2019 electricity bill $1,300

Accounting services $1,200

Repairs to floor polisher $400

Two vacuums purchased $5,200

2. You noticed a purchase order placed by Cleaning Inc was placed for new computers with a price of $15,000 in November 2019 that will be delivered in March of 2020. At the time the order was placed, a $3,000 deposit was provided, and it was charged to equipment (asset).

3. 15% of the bank loan will be paid in 2020. The remainder will be paid over the following three years. No payments on the principal of the loan were made in 2019.

4. The interest rate on the bank loan is 4% per annuum paid quarterly. There was no payment made for the last quarter of the year. (remember to report the current and non-current portion of the loan on the balance sheet)

5. Depreciation on the current equipment is $15,000.

6. The two vacuums in #1 were delivered and operating December 1, 2019 and have a life of 4 years with a residual value of $400 in total for both vacuums. No entry was made when they were delivered.

7. The insurance was purchased March 31, 2019 and covered three years from that date.

8. A physical review of some inventory in the warehouse that was purchased for $4,000 is now obsolete and worthless.

9. During 2019 an old photo copier that had an original cost of $4,000 and accumulated depreciation of $1,700 was thrown out.

10. $14,000 of staff salaries were owed at the end of the year as well, Mr. Clean is going to be paid a $10,000 bonus.

11. A physical count of the supplies inventory indicated the value at year end was $6,200.

12.In November, a customer paid a $500 deposit for cleaning supplies to be delivered in January. At the time, this was recorded as sales.

13. Income is taxed at 40%.

In Excel, prepare all the necessary journal entries, adjusted trial balance, income statement, statement of changes in equity and balance sheet for December 31, 2019.

Trial Balance as December 31, 2019 Credit Debit 277,150 95,000 300,000 372,000 99,200 30,000 305,000 2,650,000 150,000 1,556,500 150,000 185,000 Cash Accounts Payable Accounts Receivable Equipment Accumulated Depreciation equipment Advertising expense Bank loan Sales Common shares COGS Dividends declared Goodwill Income tax expense interest expense-bank loan inventory Prepaid insurance Rent expense Retained earnings Salaries expense Bonus expense Supplies Inventory(A) Customer deposits (L) Depreciation expense Hydro expense Repairs expense interest payable Deposit (A) Insurance expense salary payable bonus paybale supplies expense Loss on disposal of equipment Accounting services Current portion of bank loan Income tax payable Total 9,150 340,000 12,000 120,000 452,000 376,000 12,400 11,000 3,751,200 3,751,200 Trial Balance as December 31, 2019 Credit Debit 277,150 95,000 300,000 372,000 99,200 30,000 305,000 2,650,000 150,000 1,556,500 150,000 185,000 Cash Accounts Payable Accounts Receivable Equipment Accumulated Depreciation equipment Advertising expense Bank loan Sales Common shares COGS Dividends declared Goodwill Income tax expense interest expense-bank loan inventory Prepaid insurance Rent expense Retained earnings Salaries expense Bonus expense Supplies Inventory(A) Customer deposits (L) Depreciation expense Hydro expense Repairs expense interest payable Deposit (A) Insurance expense salary payable bonus paybale supplies expense Loss on disposal of equipment Accounting services Current portion of bank loan Income tax payable Total 9,150 340,000 12,000 120,000 452,000 376,000 12,400 11,000 3,751,200 3,751,200