3 Cloutier Inc., set up as a privately held corporation, operating as a ready to wear garments relailer, of which 100% of the Common Shares are owned by Bryan Cloutier. You were hired to account for transactions for the month of June 2023, complete month end processing. prepare the financial statements and perform a financial ratio analysis as of the end of that month. They use perpetual inventory system and use the weigted average method to determine value for the ted below. The bank loan has an annual interest rate of 9% and has monthly principal payment of $1,665. The Chart of Accounts [GL no.] is shown below: \begin{tabular}{|l|c|} \hline Prepaid Insurance & 125 \\ \hline Equipment & 140 \\ \hline 2 Accumulated Depreciation & 145 \\ \hline LIABILITIES & \\ 3 Accounts Payable & 200 \\ \hline 4 Interest Payable & 205 \\ \hline 5 CPP Payable & 220 \\ \hline 6 El Payable & 225 \\ \hline 7 Income Tax Payable & 230 \\ \hline 8 Salaries Payable & 235 \\ \hline Unearned Revenue & 240 \\ \hline Bank Loan & 245 \\ \hline 1 SHAPEHOLDERS' EQUITY & \\ \hline 2 Common Shares & 300 \\ \hline 3 Retained Earnings & 305 \\ \hline \end{tabular} \begin{tabular}{|l|c|} \hline Other Income & 430 \\ \hline EXPENSES & \\ \hline Cost of Goods Sold & 500 \\ \hline Employee Benefits Expense & 510 \\ \hline Insurance Expense & 515 \\ \hline Interest Expense & 520 \\ \hline Office Supplies Expense & 525 \\ \hline Rent Expense & 530 \\ \hline Salaries Expense & 535 \\ \hline Bank Charges Expense & 540 \\ \hline Maintenance Expense & 545 \\ \hline Entertainment Expense & 550 \\ \hline Shipping Expense & 555 \\ \hline Cash Over and Short & 560 \\ \hline \end{tabular} Required: a) Prepare the journal entries for the month of June. You will also need to update the inventory in the table for each purchase and sale, return or allowance, found under the Inventory Valuation tab of this workbook. b)Enter the opening balances of the accounts from the opening balance sheet and post the above journal entries to the account. c) Complete the bank reconciliation report d) Record the iournal entries from the bank reconciliation and post amounts to general ledger accounts. e) Complete the 10-column worksheet. f) Post the adiusting entries to the accounts. g) Journalize and post the adiustments. h) Prepare the multistep income statement, calculation of retained earnings, classified balance sheet found under the financial statements tab of this workbook. i) Answer the analysis questions from ' a ' to 'I' found under the financial statements tab of this workbook. i) Answer all the questions in the Quiz Questions Solution tab At the end of June, the following adjustment had to be journalized to properly report the balances of the company's accounts: \begin{tabular}{|l|l|} \hline Jun 30 & ForPrepaidInsurance,recordtheadjustmentof$1,200tothecurrentmonthexpense. \\ \hline Jun 30 & For Unearned Revenue, $4,350 still remains unearned at the end of June. \\ \hline Jun 30 & Monthly depreciation on the equipment was $2,150. \\ \hline \end{tabular} Cloutier Inc. Classified Balance Sheet As at May 31, 2023 Assets 2 Required: Using the balances of the General Ledger accounts as of June 30 , complete the financial statements. 1) Prepare a multistep income statement. 3) Prepare a classified balance sheet. Assume that $19.980 of the bank loan will be paid off in the 12 months. Based on the information above, answer the following questions. a) Calculate the current ratio as at June 30,2023. b) Does Cloutier Inc. have a good or bad current ratio? Explain why or why not. c) Caloulate the inventory days on hand ratio as at June 30, 2023. (Since this is for the month, do not multiply by 365 in the formula. Instead multiply by 31 days.) d) Last month, the inventory days on hand ratio was 12 days. Has the ratio improved? Why or why not? e) Caloulate the debt to equity ratio as at June 30,2023 . f) Calculate the gross profit margin as at June 30,2023 . 9) Last month, the gross profit margin percentage was 63%. What could have caused this dectease in gross margin peroentage? WIC Cevile the nwotion tumover ar at dune 20 ang2 3 Cloutier Inc., set up as a privately held corporation, operating as a ready to wear garments relailer, of which 100% of the Common Shares are owned by Bryan Cloutier. You were hired to account for transactions for the month of June 2023, complete month end processing. prepare the financial statements and perform a financial ratio analysis as of the end of that month. They use perpetual inventory system and use the weigted average method to determine value for the ted below. The bank loan has an annual interest rate of 9% and has monthly principal payment of $1,665. The Chart of Accounts [GL no.] is shown below: \begin{tabular}{|l|c|} \hline Prepaid Insurance & 125 \\ \hline Equipment & 140 \\ \hline 2 Accumulated Depreciation & 145 \\ \hline LIABILITIES & \\ 3 Accounts Payable & 200 \\ \hline 4 Interest Payable & 205 \\ \hline 5 CPP Payable & 220 \\ \hline 6 El Payable & 225 \\ \hline 7 Income Tax Payable & 230 \\ \hline 8 Salaries Payable & 235 \\ \hline Unearned Revenue & 240 \\ \hline Bank Loan & 245 \\ \hline 1 SHAPEHOLDERS' EQUITY & \\ \hline 2 Common Shares & 300 \\ \hline 3 Retained Earnings & 305 \\ \hline \end{tabular} \begin{tabular}{|l|c|} \hline Other Income & 430 \\ \hline EXPENSES & \\ \hline Cost of Goods Sold & 500 \\ \hline Employee Benefits Expense & 510 \\ \hline Insurance Expense & 515 \\ \hline Interest Expense & 520 \\ \hline Office Supplies Expense & 525 \\ \hline Rent Expense & 530 \\ \hline Salaries Expense & 535 \\ \hline Bank Charges Expense & 540 \\ \hline Maintenance Expense & 545 \\ \hline Entertainment Expense & 550 \\ \hline Shipping Expense & 555 \\ \hline Cash Over and Short & 560 \\ \hline \end{tabular} Required: a) Prepare the journal entries for the month of June. You will also need to update the inventory in the table for each purchase and sale, return or allowance, found under the Inventory Valuation tab of this workbook. b)Enter the opening balances of the accounts from the opening balance sheet and post the above journal entries to the account. c) Complete the bank reconciliation report d) Record the iournal entries from the bank reconciliation and post amounts to general ledger accounts. e) Complete the 10-column worksheet. f) Post the adiusting entries to the accounts. g) Journalize and post the adiustments. h) Prepare the multistep income statement, calculation of retained earnings, classified balance sheet found under the financial statements tab of this workbook. i) Answer the analysis questions from ' a ' to 'I' found under the financial statements tab of this workbook. i) Answer all the questions in the Quiz Questions Solution tab At the end of June, the following adjustment had to be journalized to properly report the balances of the company's accounts: \begin{tabular}{|l|l|} \hline Jun 30 & ForPrepaidInsurance,recordtheadjustmentof$1,200tothecurrentmonthexpense. \\ \hline Jun 30 & For Unearned Revenue, $4,350 still remains unearned at the end of June. \\ \hline Jun 30 & Monthly depreciation on the equipment was $2,150. \\ \hline \end{tabular} Cloutier Inc. Classified Balance Sheet As at May 31, 2023 Assets 2 Required: Using the balances of the General Ledger accounts as of June 30 , complete the financial statements. 1) Prepare a multistep income statement. 3) Prepare a classified balance sheet. Assume that $19.980 of the bank loan will be paid off in the 12 months. Based on the information above, answer the following questions. a) Calculate the current ratio as at June 30,2023. b) Does Cloutier Inc. have a good or bad current ratio? Explain why or why not. c) Caloulate the inventory days on hand ratio as at June 30, 2023. (Since this is for the month, do not multiply by 365 in the formula. Instead multiply by 31 days.) d) Last month, the inventory days on hand ratio was 12 days. Has the ratio improved? Why or why not? e) Caloulate the debt to equity ratio as at June 30,2023 . f) Calculate the gross profit margin as at June 30,2023 . 9) Last month, the gross profit margin percentage was 63%. What could have caused this dectease in gross margin peroentage? WIC Cevile the nwotion tumover ar at dune 20 ang2
