Enterprise Bookings Limited Enterprise Bookings Limited, a start-up company, manages concert ticket sales for performance venues. The company just finished its first year of operations. Enterprise's results are summarized below: Enterprise Bookings Ltd. Income Statement For the year ended December 31, 2020 Ticket Sales Revenue $10,000,000 Cost of Tickets Sold 9,000,000 Sales and Marketing 1,250,000 Expenses Administration 250,000 Net Income ($500,000) The founder and CEO, K.T. James, is happy with the company's first year. K.T. is trying to raise financing to grow the business. Operations for the first year were financed by investment in Enterprise Bookings by K.T.'s spouse's parents. They received 5% of the company's common shares. K.T.s spouse did Enterprise's bookkeeping for 2020. K.T. just hired you, a recently qualified CPA, as the company's part-time CFO. For your services K.T. has agreed to give you 1% of Enterprise's shares. K.T. tells you these shares will be worth much more than your usual rate of pay when the company succeeds, and that your job is to make sure that happens! Ticket Sales Revenue: Ticket sales revenue represents 200,000 tickets sold at an average price of $50.00 for the venues who sell their concert tickets on Enterprise's platform. Enterprise has no risk of loss from credit card charge reversals and concert cancellation refunds. The performance venues are responsible for 100% of these amounts. Enterprise keeps a 10% commission for arranging each ticket sale, and forwards the remaining 90% to the performance venue. Cost of Tickets Sold This represents the remaining 90% of the concert ticket costs which is forwarded by Enterprise to the event venues. Required a. Prepare any necessary adjustments for Enterprise related to how it accounts for its revenue and cost of goods sold. If no entry is required, indicate "No Adjustment". b. Explain what you did in (a) by applying at least one foundational principles or element concept to support your adjustment, or decision of no adjustment. c. Did anything in the case facts give you any concern about taking on the CFO contract at Enterprise? If so, how would you deal with the situation