Laura has just finished her first year of business and felt very good about the business but is worried that not all the information is accounted for when she reviewed the year end on July 15, 2021 She has decided to hire William from Superstar Partners, LLP to review the unadjusted trial balance The following is the unadjusted trial balance as of June 30, 2021 Laura Lee Inc Unadjusted Trial Balance June 30, 2021 Account Cash $31000 Accounts Receivable $159000 Inventory $42000 Prepaids $9500 Equipment $1105000 Accumulated Depreciation Equipment $204000 Other Assets $80900 Accounts Payable $94000 Unearned Revenue $35000 Notes Payable (Due 2026) $100000 Common Shares $364750 Revenue $1298000 Salaries Expense $237000 Rent Expense $329000 Interest Expense $102350 $2095750 $2095750 The following was reviewed with William and Laura and agree to the following adjustments for the year ended June 30 a) Physical Inventory counts shows $16,500 of supplies on hand b) Prepaid rent at June 30 should be $5,000 c) Depreciation for 2021 is $55,000 d) Unearned Revenue should be 31,000 e) Wages in the amount of $23,000 are owed but unpaid and not recorded at year end f) Six Months interest at 6 on the note was paid on March 31 Interest for the period from April 1 to June 30 is not paid and not recorded g) Income tax of $89,000 is owed but not recorded and unpaid Laura wants Bill to provided her with the adjusting journal entries as well as the statement of earnings, statement of retained earnings and the statement of financial position In addition, Laura thought about the following things, one is a bank reconciliation is done monthly, but no one looks at them She also tries to monitor inventory by having everyone complete a job sheet Each person is responsible for noting the inventory used and should be done immediately, however sometimes they are not done at that point, Laura reminds everyone to do at least at the end of each day Laura also wants to look at better controls Can you briefly explain some control issues that would be a benefit for Laura to institute or to improve on in which she is currently doing for the company

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Laura has just finished her first year of business and felt very good about the business but is worried that not all the information is

Laura has just finished her first year of business and felt very good about the business but is worried that not all the information is accounted for when she reviewed the year- end on July 15, 2021. She has decided to hire William from Superstar Partners, LLP. to review the unadjusted trial balance.

The following is the unadjusted trial balance as of June 30, 2021:

Laura Lee Inc. Unadjusted Trial Balance June 30, 2021

Account

Cash	$31000
Accounts Receivable	$159000
Inventory	$42000
Prepaids	$9500
Equipment	$1105000
Accumulated Depreciation- Equipment		$204000
Other Assets	$80900
Accounts Payable		$94000
Unearned Revenue		$35000
Notes Payable (Due 2026)		$100000
Common Shares		$364750
Revenue		$1298000
Salaries Expense	$237000
Rent Expense	$329000
Interest Expense	$102350
	$2095750	$2095750

The following was reviewed with William and Laura and agree to the following adjustments for the year ended June 30:

a) Physical Inventory counts shows $16,500 of supplies on hand. b) Prepaid rent at June 30 should be $5,000. c) Depreciation for 2021 is $55,000. d) Unearned Revenue should be 31,000.

e) Wages in the amount of $23,000 are owed but unpaid and not recorded at year- end.
f) Six Months interest at 6% on the note was paid on March 31. Interest for the period from April 1 to June 30 is not paid and not recorded.
g) Income tax of $89,000 is owed but not recorded and unpaid.

Laura wants Bill to provided her with the adjusting journal entries as well as the statement of earnings, statement of retained earnings and the statement of financial position. In addition, Laura thought about the following things, one is a bank reconciliation is done monthly, but no one looks at them. She also tries to monitor inventory by having everyone complete a job sheet. Each person is responsible for noting the inventory used and should be done immediately, however sometimes they are not done at that point, Laura reminds everyone to do at least at the end of each day. Laura also wants to look at better controls. Can you briefly explain some control issues that would be a benefit for Laura to institute or to improve on in which she is currently doing for the company?