financial You have just been hired as their Financial Accountant. The Controller, Nelson Chan, tells you that the company prepares statements on a monthly basis and Nelson then reviews them with the company's owner for approval each month. Nelson provides you with the following opening unadjusted Trial Balance as of September 1, 2021. This trial balance below reflects the company's transactions from October 1, 2020 to August 31, 2021. Pike Place Coffee Ltd. has a September 30th year-end. Credit Debit 55,750 15,500 10,000 37,000 325,500 57,600 595,325 Account Description Cash Accounts Receivable Supplies Inventory Prepaid Rent Office Equipment Accumulated Depreciation - Office Equipment Caf Equipment Accumulated Depreciation - Caf Equipment Accounts Payable Salaries Payable Interest Payable Unearned Catering Revenue Loan Payable Common Shares Retained Earnings Dividends Caf Revenue Catering Revenue salaries Expense Interest Expense Depreciation Expense Supplies Expense Utilities Expense Caf Repairs Expense Insurance Expense Rent Expense Income Tax Expense Total 95,700 11,000 7,500 2,750 10,375 45,000 75,000 105,250 15,000 1,275,350 72,000 448,670 12,000 17,800 47,650 12,500 15,930 27,000 102,300 19,600 1,757,525 $ $ 1,757,525 Nelson also provides you with details on several transactions that took place throughout the month of September. Nelson would like you to record these journal entries for the month of September 2021. a.) The Supplies Inventory was counted at September 30th. The count showed that supplies on hand at September 30th were $5,200 b.) Rent was prepaid on September 1st for a six (6) month period to February 28, 2022. c.) The office equipment has an estimated useful life of 15 years with no estimated residual value. on a monthly basis. It has been recorded for the year-to-date (ie. September has not yet been recorded). d.) The caf equipment has an estimated useful life of 10 years with an estimated residual value of $25,000. Note that depreciation expense is recorded on a monthly basis. It has been recorded for the year-to-date (ie. September has not yet been recorded). e.) The $45,000 note payable was issued on April 1, 2021 and accrues interest at a 7% annual rate. The note is expected to be repaid by March 30, 2024, along with any interest payable. The interest expense from April 1st to August 31st has already been recorded. 1.) On September 1st, the company entered into an agreement with a technology company based in Vancouver to provide catering services for the next 5 months. The technology company was billed and paid $10,375 on September 1st. At September 30th, Pike Place Coffee Ltd. had provided one month of catering services to the technology company and had 4 months remaining in the agreement. 5.) On September 30th, the company received a bill for Utilities for their cafes in the Seattle area in the amount of $1,380. The bill has not yet been recorded or paid. h.) On September 28th, the company provided catering services for a customer in Portland, Oregon for $2,750. The client has not yet been billed or paid for the catering services. -- Continued on Next Page - REQUIRED: 1. Prepare the adjusting journal entries to record the transactions for the month of September. Be sure to show your work for any calculations! (16 marks) 2. Prepare an adjusted trial balance at September 30, 2021. (10 marks) Prepare an income statement, statement of changes in equity and balance sheet for the year ended September 30, 2021. (22 marks) 4. Prepare the closing journal entries for the year ended September 30, 2021. (8 marks)
