Lacorte Inc., set up as a privately held corporation, operating as a ready to wear garments retailer, of which 100% of the Common Shares are owned by Ralph Lacorte. You were hired to account for transactions for the month of April 2022, 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 cost method to determine value for the inventory. Its balance sheet as at March 31, 2022, is presented below. The bank loan has an annual interest rate of 7% and has monthly principal payment of $1,440. Reuired: a) Prepare the journal entries for the month of April. You will also need to update the inventory in the table for each purchase and sale found under the Inventory Valuation tab of this workbook. b) Post the above joufnal entries to the accounts. c) Complete the bank reconciliation report. d) Record the journal entries from the bank reconciliation and post amounts to general ledger accounts e) Complete the 10-column worksheet. e) Post the adjusting entries to the accounts f) Journalize and post the adjustments g.) Prepare the multistep income statement, calculation of retained earnings, classified balance sheet found under the financial statements tab of this workbook. h)Answer the analysis questions from "a' to "i' found under the financial statements tab of this workbook. Transactions for the month of April: \begin{tabular}{|c|l|c|c|c|} \hline & General Joural & & Page 5 \\ \hline Date & Account Title and Explanation & PR & DR & CR \\ \hline 2022 & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \end{tabular} General Ledger Accounts \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: & \multicolumn{4}{|l|}{ Cash } & GL No: & 101 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 58,100.00 & DR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: & \multicolumn{4}{|l|}{ Accounts Receivable } & \multicolumn{1}{l|}{ GL No: } & \multicolumn{1}{l|}{ 110 } \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 16,870.00 & DR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: & \multicolumn{2}{l|}{ Merchandise Inventory } & GL No: & \multicolumn{1}{|l|}{120} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 30,240.00 & DR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline Account: & \multicolumn{2}{l|}{ Prepaid Insurance } & GL No: & \multicolumn{1}{c|}{125} \\ \hline Date & Description & PR & DR & CR & Balance (DR or CR) \\ \hline & Opening Balance & & & & 6,200.00 & DR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|c|} \hline Account: & \multicolumn{4}{l|}{ Equipment } & GL No: & \multicolumn{1}{|c|}{140} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 158,000.00 & DR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline Account: & \multicolumn{3}{|l|}{ Accumulated Depreciation } & GL No: & \multicolumn{1}{|c|}{ 145 } \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 60,000.00 & CR \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline Account: & \multicolumn{2}{l|}{ Accounts Payable } & GL No: & \multicolumn{2}{c|}{200} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 12,000.00 & CR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline \multicolumn{4}{|l|}{ Account: } & Interest Payable & GL No: & \multicolumn{2}{c|}{205} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 0.00 & CR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: & \multicolumn{4}{l|}{ CPP Payable } & GL No: & \multicolumn{2}{l|}{220} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 0.00 & CR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: \\ \hline \multicolumn{2}{|l|}{ El Payable } & & GL No: & \multicolumn{2}{|l|}{225} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 0.00 & CR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline \multicolumn{1}{|l|}{ Account: } & \multicolumn{2}{l|}{ Salaries Payable } & GL No: & \multicolumn{2}{c|}{235} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & 6,100.00 & CR \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{4}{|l|}{ Unearned Revenue } & GL No: & \multicolumn{1}{l|}{240} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{l|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 12,500.00 & CR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: & \multicolumn{4}{|l|}{ Bank Loan } & GL No: & \multicolumn{1}{|c|}{245} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 43,200.00 & CR \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline \multicolumn{4}{|c|}{ Account: } & \multicolumn{2}{l|}{ Common Shares } & GL No: & \multicolumn{1}{l|}{300} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 76,000.00 & CR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ Account: } & Retained Earnings & GL No: & \multicolumn{1}{l|}{305} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 59,610.00 & CR \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline \multicolumn{4}{|l|}{ Account: } \\ \hline \multicolumn{2}{|l|}{ Sales Revenue } & GL No: & \multicolumn{1}{|c|}{400} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline \multicolumn{4}{|l|}{ Account: } & \multicolumn{2}{l|}{ Sales Discounts } & GL No: & \multicolumn{1}{|c|}{405} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline Account: & \multicolumn{3}{l|}{ Sales Returns and Allowances } & GL No: & \multicolumn{4}{|c|}{410} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|c|c|} \hline \multicolumn{4}{|l|}{ Account: } & \multicolumn{2}{|l|}{ Interest Revenue } & GL No: & \multicolumn{4}{|c|}{420} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: & \multicolumn{2}{l|}{ Cost of Goods Sold } & GL No: & 500 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline Account: & \multicolumn{4}{|l|}{ Employee Benefits Expense } & GL No: & \multicolumn{5}{|l|}{510} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline \multicolumn{2}{|c|}{ Account: } & \multicolumn{2}{l|}{ Insurance Expense } & GL No: & 520 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline Account: & \multicolumn{2}{l|}{ Office Supplies Expense } & GL No: & 530 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline \multicolumn{4}{|c|}{ Account: } & \multicolumn{2}{l|}{ Salaries Expense } & GL No: & \multicolumn{1}{|c|}{540} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: & \multicolumn{2}{l|}{ Bank Charges Expense } & GL No: & \multicolumn{5}{|c|}{545} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: & \multicolumn{3}{|l|}{ Shipping Expense } & GL No: & 560 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: & \multicolumn{4}{l|}{ Cash Over and Short } & GL No: & \multicolumn{1}{|c|}{565} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} Notes: Round unit cost to 2 decimal places, then apply to quanity sold when determining total cost of goods sold. Use this chart to keep track of inventory values The inventory figure includes 720 units purchased at $42.00 each. Your accountant goes through the mail and opens the bank statement for the month of April provided by Bank of Commerce. It is shown below. Additional Information: a) The $17,400 is already recorded in the ledger last month. b) Cheque number of the company has (4) digits. Required: Prepare the April bank reconciliation for Lacorte Inc. using the bank statement and general ledger provided. Compare the information in the general ledger to the bank statement. Once reconciled, record the relevant journal entries in the general journal and post the entries in the general ledger to bring the company's record up to date. Required: Using the balances of the General Ledger accounts as of April 30, complete the financial statements. 1) Prepare a multistep income statement. 2) Prepare a calculation of retained eamings 3) Prepare a classified balance sheet. Assume that $17,280 of the bank loan will be paid off in the next 12 months. Based on the information above, answer the following questions. a) Calculate the current ratio as at April 30, 2022. b) Does Lacorte Inc. have a good or bad current ratio? Explain why or why not. c) Calculate the inventory days on hand ratio as at April 30, 2022. (Since this is for the month, do not multiply by 365 in the formula. Instead multiply by 31 days.) Has the ratio improved? Why or why not? e) Calculate the debt to equity ratio as at April 30,2022. f) Calculate the gross profit margin as at April 30, 2022. What could have cause the decrease in the gross profit margin? h) Calculate the inventory turnover as at April 30, 2022. Is the company holding inventory longer or for a shorter period of time? Lacorte Inc., set up as a privately held corporation, operating as a ready to wear garments retailer, of which 100% of the Common Shares are owned by Ralph Lacorte. You were hired to account for transactions for the month of April 2022, 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 cost method to determine value for the inventory. Its balance sheet as at March 31, 2022, is presented below. The bank loan has an annual interest rate of 7% and has monthly principal payment of $1,440. Reuired: a) Prepare the journal entries for the month of April. You will also need to update the inventory in the table for each purchase and sale found under the Inventory Valuation tab of this workbook. b) Post the above joufnal entries to the accounts. c) Complete the bank reconciliation report. d) Record the journal entries from the bank reconciliation and post amounts to general ledger accounts e) Complete the 10-column worksheet. e) Post the adjusting entries to the accounts f) Journalize and post the adjustments g.) Prepare the multistep income statement, calculation of retained earnings, classified balance sheet found under the financial statements tab of this workbook. h)Answer the analysis questions from "a' to "i' found under the financial statements tab of this workbook. Transactions for the month of April: \begin{tabular}{|c|l|c|c|c|} \hline & General Joural & & Page 5 \\ \hline Date & Account Title and Explanation & PR & DR & CR \\ \hline 2022 & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \end{tabular} General Ledger Accounts \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: & \multicolumn{4}{|l|}{ Cash } & GL No: & 101 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 58,100.00 & DR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: & \multicolumn{4}{|l|}{ Accounts Receivable } & \multicolumn{1}{l|}{ GL No: } & \multicolumn{1}{l|}{ 110 } \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 16,870.00 & DR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: & \multicolumn{2}{l|}{ Merchandise Inventory } & GL No: & \multicolumn{1}{|l|}{120} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 30,240.00 & DR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & & \\ \hline & & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline Account: & \multicolumn{2}{l|}{ Prepaid Insurance } & GL No: & \multicolumn{1}{c|}{125} \\ \hline Date & Description & PR & DR & CR & Balance (DR or CR) \\ \hline & Opening Balance & & & & 6,200.00 & DR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|c|} \hline Account: & \multicolumn{4}{l|}{ Equipment } & GL No: & \multicolumn{1}{|c|}{140} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 158,000.00 & DR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline Account: & \multicolumn{3}{|l|}{ Accumulated Depreciation } & GL No: & \multicolumn{1}{|c|}{ 145 } \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 60,000.00 & CR \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline Account: & \multicolumn{2}{l|}{ Accounts Payable } & GL No: & \multicolumn{2}{c|}{200} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 12,000.00 & CR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline \multicolumn{4}{|l|}{ Account: } & Interest Payable & GL No: & \multicolumn{2}{c|}{205} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 0.00 & CR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: & \multicolumn{4}{l|}{ CPP Payable } & GL No: & \multicolumn{2}{l|}{220} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 0.00 & CR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: \\ \hline \multicolumn{2}{|l|}{ El Payable } & & GL No: & \multicolumn{2}{|l|}{225} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 0.00 & CR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline \multicolumn{1}{|l|}{ Account: } & \multicolumn{2}{l|}{ Salaries Payable } & GL No: & \multicolumn{2}{c|}{235} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & 6,100.00 & CR \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{4}{|l|}{ Unearned Revenue } & GL No: & \multicolumn{1}{l|}{240} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{l|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 12,500.00 & CR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: & \multicolumn{4}{|l|}{ Bank Loan } & GL No: & \multicolumn{1}{|c|}{245} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 43,200.00 & CR \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline \multicolumn{4}{|c|}{ Account: } & \multicolumn{2}{l|}{ Common Shares } & GL No: & \multicolumn{1}{l|}{300} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 76,000.00 & CR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ Account: } & Retained Earnings & GL No: & \multicolumn{1}{l|}{305} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 59,610.00 & CR \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline \multicolumn{4}{|l|}{ Account: } \\ \hline \multicolumn{2}{|l|}{ Sales Revenue } & GL No: & \multicolumn{1}{|c|}{400} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline \multicolumn{4}{|l|}{ Account: } & \multicolumn{2}{l|}{ Sales Discounts } & GL No: & \multicolumn{1}{|c|}{405} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline Account: & \multicolumn{3}{l|}{ Sales Returns and Allowances } & GL No: & \multicolumn{4}{|c|}{410} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|c|c|} \hline \multicolumn{4}{|l|}{ Account: } & \multicolumn{2}{|l|}{ Interest Revenue } & GL No: & \multicolumn{4}{|c|}{420} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: & \multicolumn{2}{l|}{ Cost of Goods Sold } & GL No: & 500 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline Account: & \multicolumn{4}{|l|}{ Employee Benefits Expense } & GL No: & \multicolumn{5}{|l|}{510} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline \multicolumn{2}{|c|}{ Account: } & \multicolumn{2}{l|}{ Insurance Expense } & GL No: & 520 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline Account: & \multicolumn{2}{l|}{ Office Supplies Expense } & GL No: & 530 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline \multicolumn{4}{|c|}{ Account: } & \multicolumn{2}{l|}{ Salaries Expense } & GL No: & \multicolumn{1}{|c|}{540} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: & \multicolumn{2}{l|}{ Bank Charges Expense } & GL No: & \multicolumn{5}{|c|}{545} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: & \multicolumn{3}{|l|}{ Shipping Expense } & GL No: & 560 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: & \multicolumn{4}{l|}{ Cash Over and Short } & GL No: & \multicolumn{1}{|c|}{565} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} Notes: Round unit cost to 2 decimal places, then apply to quanity sold when determining total cost of goods sold. Use this chart to keep track of inventory values The inventory figure includes 720 units purchased at $42.00 each. Your accountant goes through the mail and opens the bank statement for the month of April provided by Bank of Commerce. It is shown below. Additional Information: a) The $17,400 is already recorded in the ledger last month. b) Cheque number of the company has (4) digits. Required: Prepare the April bank reconciliation for Lacorte Inc. using the bank statement and general ledger provided. Compare the information in the general ledger to the bank statement. Once reconciled, record the relevant journal entries in the general journal and post the entries in the general ledger to bring the company's record up to date. Required: Using the balances of the General Ledger accounts as of April 30, complete the financial statements. 1) Prepare a multistep income statement. 2) Prepare a calculation of retained eamings 3) Prepare a classified balance sheet. Assume that $17,280 of the bank loan will be paid off in the next 12 months. Based on the information above, answer the following questions. a) Calculate the current ratio as at April 30, 2022. b) Does Lacorte Inc. have a good or bad current ratio? Explain why or why not. c) Calculate the inventory days on hand ratio as at April 30, 2022. (Since this is for the month, do not multiply by 365 in the formula. Instead multiply by 31 days.) Has the ratio improved? Why or why not? e) Calculate the debt to equity ratio as at April 30,2022. f) Calculate the gross profit margin as at April 30, 2022. What could have cause the decrease in the gross profit margin? h) Calculate the inventory turnover as at April 30, 2022. Is the company holding inventory longer or for a shorter period of time
