duy Assessment 2: Weighting: 15% Due Date: March 27th, 2020 @ 11:55 PM ECT Related Course Objectives: 1. Describe the system of accounting standards and principles to utilize these in the preparation and communication of relevant financial information. 2. Apply the accrual method of accounting and the accounting cycle in preparation of financial statements 3. Prepare a balance sheet and income statement for merchandising and service organizations 4. Apply generally accepted principles when accounting for cash dividends and preparation of journal entries to record the issuance of stock. Assignment Description and Instructions Suppose you are a part of a group of students from a prominent university and were sent out as a team to work with a leading merchandizing company as a part of a work experience program The team having been introduced to the general manger was told that the Accountant who normally prepares the financial statements has suddenly resigned and there is no one available to prepare the company's financial statements which are now due. As aspiring university students, you and your group members have expressed an interest in taking on the task. As a group, you are required to collaborate and analyse the problem at hand then apply the accrual basis of accounting in the preparation of the company's financial statements. Each member of the varying groups will be required to attend a special BBC session to be organized by your tutor. Your tutor will select one or two groups to jointly do a presentation of no more than two (2) hours on the assignment. Each student must be present at this specially designed session to earn marks allotted and you tutors will provide further details. 079 200 *) Ince of 1.60000 The following additional informatie was made b) The Scholes Shoes Id, is a retailer of children's school shoes and they have produced the following Uradjusted Trial Balance Scholes Shoes Ltd Unadjusted Trial Balance as at December 31, 2018 DR CR 1.500.000 1,200,000 100.000 400.000 90,000 1.600.000 10,000,000 3,000,000 1.200.000 240,000 900,000 200,000 2,300,000 6,500,000 A/C Name Cash Accounts receivable Allowance for had debe Merchandise Inventory Store Supplies Prepaid Insurance Burling Accumulated depreciation - Building Fixtures and Fittings Accumulated depreciation Fixtures and Fitnes Accounts payable Wages payable Interest payable Uneamed Sales revenue Mortgage Scholes', Capital Scholes'. Withdrawals Sales revenue Sales discount Sales returns and allowances Cost of goods sold Wages Expense Insurance Expense Depreciation Expense - Buikling Depreciation Expense - Fixtures and Fittings Supplies Expense Utilities Expense Bad Debt Expense Travelling Expense Interest Expense 150,000 7,305,000 65,000 130,000 3,000,000 870,000 70,000 180,000 65,000 25,000 20,545,000 20,545,000 295 0902 VISA produced the following The following additional information was made available at December 31, 2018 a) Insurance of $1,600,000 was paid on January 1, 2018 for the period January 2018 to April 2019. b) The company's building has an estimated life of ten (10) years and is being depreciated on the straight-line method of depreciation, down to a residual value of So. e) The fixtures and fittings are being depreciated over ten (10) years on the double-declining method of deprecation, down to a residue of $128.849. d) Wages eamed by the company's employees and NOT paid at December 31, 2018 amounted to $130,000. e) A physical count of inventory at December 31, 2018, reveals $405.000 worth of Inventory on hand. 1 The aging of the accounts receivable schedule at December 31, 2018 indicated that the estimated uncollectible on accounts receivable is $120,000. g) Unearned sales revenue carned during December 2018, $100,000. h) Accrued interest payable on mortgage $120,000 Required: 1. Prepare the necessary adjusting entries on December 31, 2018 2. Prepare the company's Multiple-step Income Statement for the year ended December 31, 2018. 3. Prepare the company's Statement of Owner's Equity for the year ended December 31, 2018 4. Prepare the company's classified Balance Sheet at December 31, 2018 5. Prepare the closing entries 6. Prepare the post-closing trial balance