In this scenario, you are presented with the companys financial records and are required to use the principles learned from Units 1 to 3 to assist you in presenting the required answers. You will be required to use the accrual basis of accounting as your guide to record the adjusting journal entries. Vigilance and a keen eye for details will be crucial as the information presented will challenge your ability to use good reasoning and critical thinking to analyze the financial data presented in the preparation of the companys financial statements. Students are expected to work in a collaborative space where they will discuss the case/questions and prepare the groups response. No individual work will be accepted, and a penalty of two (2) marks per day after the due date will be applicable for late submissions. All submissions should be typed in an Excel document only and should include a cover page to show the students name, Course name/code, table of contents, number of pages, and date. Marks will be lost if the established rules are not adhered. Completion of the peer review form by each student including the group leader is mandatory. The completed forms must be submitted by each member to the group leader who must upload them along with the groups answer to the drop box. In the Excel document you should create a sheet or tab for each category of the question and name that tab. For example, you could name tab general ledger accounts then place all the T accounts in it, you could name another tab journal entries for the recording of the transactions. The excel document should therefore contain several worksheets meaning that you will have a worksheet for each requirement to the assignment and these must be displayed on your table of contents. For example, Journal entries -page #1, trail balance page # 2, adjusting journal entries page 3. Your table of contents should also be on a separate worksheet listing all the requirements that ties with the tabs created. Please place the income statement, statement of owner's equity and balance sheet on separate worksheets. Again, no other form of documents with your answers including the scanning, Microsoft Word, or in PDF should be submitted and if done will be deemed as a breach of the rules of engagement and the grades will be forfeited. -1-

Scenario: Dalton McDonald owns and operates D Mac Trucking Ltd but has no accounting personal to prepare his financial information and has approached your group for assistance. The companys financial year end is December 31 each year. They have provided the following information and transactions for 2022: Jan 1. Jan 2. Feb 1. Mar 30. April 4. May 5. June 6. June 10. Aug 12. Sept 12. Sept 30. Oct 17. Oct 30. Oct 30. Balances from 2021 Cash $400,000; Accounts Receivable $250,000; Supplies $205,000; Furniture and Equipment $600,000; Other Creditors $218,000; and Capital $1,237,000. The following assets were received from Dalton McDonald in exchange for capital in the company: cash - $200,000, accounts receivable - $61,000, supplies - $90,000, and furniture- $400,000. Paid fifteen (15) months rent on a lease rental contract, $450,000. Paid the premiums on the property and peril insurance policies for thirteen (13) months, $100,000. Received cash from clients as an advance payment for services to be provided in the coming months, $350,000. Purchased additional equipment on account from Magic Trucking, $120,000. Received cash from clients on account, $150,000. Paid cash for rental of equipment, $75,000. Paid Magic Trucking a portion of the debt incurred on May 5, $90,000. Recorded services provided on account for the period July 1 Sept 12, $400,000. Paid part-time workers salary, $195,000. Recorded cash from cash clients for fees earned during the first half of year, $390,000. Paid cash for supplies, $40,000. Recorded services provided on account for the period June to July, $190,000. -2-

Nov 24. Nov 25. Nov 27. Dec 29. Dec 30. Dec 30. Dec 30. Recorded cash from cash clients for fees earned for the period September 13- Nov 24, $310,000. Received cash from clients on account, $250,000. Paid part-time workers for salary $195,000. Paid telephone bill for the year 2022 $140,000. Paid electricity bill for the year 2022 $310,000. Recorded cash from cash clients for fees earned for the period September 14- Dec 30, $210,000. Recorded services provided on account for October to December 2022, $150,000. Requirement: 1. Prepare the opening journal entries and journalize each transaction in the general journal referring to the following chart of accounts in selecting the accounts to be debited and credited and include a narration for each transaction: Account # 11 12 14 15 16 18 21 22 Account Name Cash Accounts Receivables Supplies Prepaid Rent Prepaid Insurance Furniture and Equipment Other Creditors Salaries Payable -3-

23 Unearned Fees 31 Capital Stock 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Insurance Expense 55 Utilities Expense 56 Equipment Rental Expense 57 Income Summary 2. Postthejournalentriestotheirrespectiveledgeraccounts. 3. Prepare a trial balance based on the balances derived after completing requirement #2. 4. The company presented the following adjustments and required you to preparing the adjusting entries in the general journal (Narration required for each journal entry): i. Insurance expired during 2022, $95,000. ii. Supplies on hand on December 31, 2022, $35,000. iii. Unpaid salary on December 31, 2022, $195,000 iv. Rent not expired on December 31, 2022, $90,000 -4-

v. Unearned fees on December 31, 2022, $50,000. 5. Post the adjusting entries to their respective ledger accounts already started in requirement # 2. 6. Prepare the adjusted trial balance. 7. Prepare all three 2022 financial statements for presentation to Mr. McDonald 8. Journalize the closing entries and balance off the ledger accounts including the income summary account. 9. Prepare the post-closing trial balance.