EXHIBIT 1 Additional Information for adjusting and correcting entries and the financial statements: 1. It is estimated that 5% of the year-end accounts receivables may not be collected and half of these were in British Columbia (BC). BOFL has never had a problem with collections before. The company received $50,000 of organic food on January 3, 2023, that had been shipped by the supplier December 29, 2022, FOB shipping point. This inventory was not included in the inventory reported on the unadjusted trial balance. 3. Distribution & Warehouse utility expense invoices for December 2022 amounting to $21,000 were received on January 2, 2023 and were paid on January 31, 2023. They have not yet been recorded. The depreciation for 2022 has been calculated correctly but not yet recorded and is as follows: Buildings- $75,000 4. Warehouse equipment - $60,000 2. Office and storage equipment - $40,000 The inventory count on December 31, 2022 included $38,000 of organic food inventory that was past its expiry date and not saleable. It could not be returned to suppliers. This inventory is included in the inventory reported on the unadjusted trial balance and no adjustment was made in the accounts. 6. On July 1, 2022 the company renewed its annual insurance policy and paid the full $28,000. The full amount was expensed on that date. The prepaid insurance account in the trial balance relates to the same insurance policy. 7. During 2022, the company sold some old office and storage equipment from the rented warehouse with an original cost of $70,000. The accumulated depreciation on this equipment was $45,500 and it was the only sale of property, plant & equipment during the year. This was recorded correctly. 8. The bond interest paid in April, July and October 2022, was recorded in the interest expense account. 5. 9. On November 1, 2022, it was discovered that a 2021 marketing and advertising invoice of $65,000 (new in 2021) had not been accrued in 2021. The full amount was paid on 16 January 2022 and recorded as Marketing and advertising expense in 2022. The bookkeeper ignored the error as the invoice was paid and no longer due. 10. The balance on the December 31, 2022 bank statement was $6,614 debit. An analysis of the bank statement and company accounts showed the following items: a. An electronic transfer of $5,000, being an advance payment by a new customer in Regina, British Columbia (BC) for organic food that was shipped on January 22, 2023. A debit memo of $120 for bank service charges and overdraft fees for December 2022. Company cheques amounting to $2,049 were written and recorded but not yet cleared by the bank. b. c. 11. The company's tax rate is 20%. 12. BOFL prepares annual adjusting entries and does not use reversing entries. All sales and purchases are made on account.

EXHIBIT 1 Additional Information for adjusting and correcting entries and the financial statements: 1. It is estimated that 5% of the year-end accounts receivables may not be collected and half of these were in British Columbia (BC). BOFL has never had a problem with collections before. 2. The company received $50,000 of organic food on January 3, 2023, that had been shipped by the supplier December 29, 2022, FOB shipping point. This inventory was not included in the inventory reported on the unadjusted trial balance. 3. Distribution & Warehouse utility expense invoices for December 2022 amounting to $21,000 were received on January 2, 2023 and were paid on January 31, 2023. They have not yet been recorded. 4. The depreciation for 2022 has been calculated correctly but not yet recorded and is as follows: Buildings-$75,000 Warehouse equipment - $60,000 Office and storage equipment - $40,000 5. The inventory count on December 31, 2022 included $38,000 of organic food inventory that was past its expiry date and not saleable. It could not be returned to suppliers. This inventory is included in the inventory reported on the unadjusted trial balance and no adjustment was made in the accounts. 6. On July 1, 2022 the company renewed its annual insurance policy and paid the full $28,000. The full amount was expensed on that date. The prepaid insurance account in the trial balance relates to the same insurance policy. 7. During 2022, the company sold some old office and storage equipment from the rented warehouse with an original cost of $70,000. The accumulated depreciation on this equipment was $45,500 and it was the only sale of property, plant & equipment during the year. This was recorded correctly. 8. The bond interest paid in April, July and October 2022, was recorded in the interest expense account. 9. On November 1, 2022, it was discovered that a 2021 marketing and advertising invoice of $65,000 (new in 2021) had not been accrued in 2021. The full amount was paid on 16 January 2022 and recorded as Marketing and advertising expense in 2022. The bookkeeper ignored the error as the invoice was paid and no longer due. 10. The balance on the December 31, 2022 bank statement was $6,614 debit. An analysis of the bank statement and company accounts showed the following items: a. An electronic transfer of $5,000, being an advance payment by a new customer in Regina, British Columbia (BC) for organic food that was shipped on January 22, 2023. b. A debit memo of $120 for bank service charges and overdraft fees for December 2022. c. Company cheques amounting to $2,049 were written and recorded but not yet cleared by the bank. 11. The company's tax rate is 20%. 12. BOFL prepares annual adjusting entries and does not use reversing entries. All sales and purchases are made on account.