EXHIBIT $,$

CHARLIE'S INTERNET CAF$$

UNADJUSTED TRIAL BALANCE

DECEMBER $31,2018$Charlie's Intemet Caf$($CIC$)$ was established and incorporated on Jamuary $1,2016,$ by Bruce Waiters and has

just completed its third year of operations with a year end of December $31.$ Bruce was born in the Muskoka

region and after completing his university degree in history, he decided to return to the area to set up his own

business. After months of research, Bruce decided to open his business alcng the Gravenhurst waterfront.

His research showed that there was tremendous potential in that area, espectally during the summer tourist

season, for a small caf$$ with an Intemet service. Local cottagers without service suggested that they would

find it appealing to check their email while shopping in the trendy area.

CIC runs out of $90$ square metres $(1,000$ square feet$)$ of space. It has one entrance into the cafe and

patio doors leading out to a deck that overlooks the water. CIC pays $$5,000$ per month for the rental of the

space. Bruce was able to negotiate with the landlord and was not required to pay the first month's rent in

advance. All of his rental payments are current and up to date. For the last two years, CIC has had a very

reliable accountant prepare its year$-$end financial statements and everything has been correct. This year,

CIC's accountant retired and Bruce did the best he could recording his own financial information. For the

information he was not sure about, he kept all of the required supporting documentation. Bruce hired your

accounting firm to prepare his financial statements for the year and you were assigned the job. Bruce sup$-$

plied you with his unadjusted trial balance and the information in Exhibit I to assist you.

Additional information:

The amount currently sitting in prepaids arose due to the insurance policy last year. Bnuce didn't

know how to correct it$,$ so he left it$.$ This year's insurance policy was purchased on November $1$ for

$$9,000.$ The policy runs from November $1$ to October $31$ of each year.

Bruce has a note that he owed $$900$ in wages to his employees for the period ending December $31.$

The loan was incurred when the cafe was opened. The loan carries an interest rate of $8\%.$ The interest

is payable two months after year end and the principal is due in $2022.$

n CIC will sometimes book special events with small organizations that are allowed to pay after the

event has taken place. On December $29,$ a small company had a gathering at the cafe. The company

was billed $$1,089$ and has $30$ days to pay it$.$ Bruce has not yet recorded this in his financial records.

n CIC declared a dividend of $$5,000$ on December $30.$

Bruce didn't know how to record amortization for the year and so left it for you to record. Amortiza$-$

tion for all assets is charged using a straight$-$line method by taking the cost of the asset and dividing

it by its expected useful life. The assets have expected useful lives as follows:

Computers: $5$ years

Caf$$ equipment: $10$ years

Furniture and fixtures: $20$ years

n$)$ The information shows that CIC owes $$400$ for a telephone bill and $$300$ for electricity for December.

These amounts have not been recorded yet.

Required

Based on the information you have, prepare the adjusting joumal entries, an adjusted trial balance, the

statement of earnings $($income statement$),$ statement of financial position $($balance sheet$),$ and statement of

retained earnings. After you have completed the statements, prepare the closing joumal entries and the post$-$

closing trial balance. Ensure you show all of your work and prepare proper joumal entries and properly

formatted financial statements. $($ please show the steps especially how you got the numbers from. i need the answer in $3$ to $4$ hours please.$)$