Please specifically tell me what/if anything needs to be edited. "Required more time" is not an example of that. Thank you in advance.

The method of solution requires indirect method. In 20X10, you were hired as the Chief Financial Officer for MC Travel Inc., a fairly young travel company that is growing quickly. A key accounting staff member has prepared the financial statements, but there are a couple of transactions that have not been recorded yet because she is waiting for your guidance regarding how these transactions should be recorded. In addition, the staff member is not confident in preparing cash flow statements, so you have been asked to prepare this statement for the 2010 year. MC Travel INC. reports under ASPE. The transactions that have not been recorded yet are as follows. 1) On January 1, 20X08, the company purchased a small hotel property in Miami for $50 million paying $10 million in cash and issuing a 5%$40 million bond at par to cover review the financial information from previous years, you quickly realized that the land portion of the total purchase price had been capitalized with building, and depreciated. Depreciation has been incorrectly recorded on the building for 20082009 and 2010, and the land is still included in the building account. The land portion of the purchase was appraised at $15 million. The company's tax rate is 2) During 20X10, the president, who is also the principal shareholder in the business, transferred ownership of a vacant piece of land in the Carribbean to the company. A hotel will be constructed on this property beginning in 2021. The cost when the president purchased this property was $10 million and the fair market value, based on the professional appraisal, at the time it was trasferred to the company was $25 million. The president was issued 50,000 common shares in exchange for this land. This transaction has not yet been booked. Additional information that you have gathered to assist in preparing the cash flow statement is as follows: The transactions that have not been recorded yet are as follows. 1) On January 1, 20X08, the company purchased a small hotel property in Miami for $50 million paying $10 million in cash and issuing a 5%$40 million bond at par to cover the balance. The bond principal is payable on January 1,2022 . When you were hired, and began to total purchase price had been capitalized with building, and depreciated. Depreciation has been of a vacant piece of land in the Carribbean to the company. A hotel will be constructed on this property beginning in 2021. The cost when the president purchased this property was $10 million and the fair market value, based on the professional appraisal, at the time it was trasferred to the \begin{tabular}{l|l|l|l|l|} \hline company was & $25 & million. The president was issued & 50,000 common shares in \end{tabular} exchange for this land. This transaction has not yet been booked. Additional information that you have gathered to assist in preparing the cash flow statement is as follows: 1) In 20X10, equipment was purchased for $250,000. In addition, some equipment was disposed of during the year. 2) Investment income includes a dividend of $150,000 received on the temporary investment. Interest income of $106,000 was reinvested in temporary investments. Additional information that you have gathered to assist in preparing the cash flow statement is as follows: 1) In 20X10, equipment was purchased for $250,000. In addition, some equipment was disposed of during the year. 2) Investment income includes a dividend of $150,000 received on the temporary investment. Interest income of $106,000 was reinvested in temporary investments. (Please see financial statements on sheet #3) Instructions: From the information on the next page, complete the necessary adjusting entries to record the transactions that have not been booked, and prepare the revised balance sheet and income statement for the year, keeping in mind that comparative figures will need to be restated. Once this is complete, prepare a statement of cash flows in good form using the indirect method for the year ended December 31,2010. Assume all transaction amounts have been reported in CAD\$\$. Hints: Please set the formulas for restated-updated columns in accordance with the DR or CR character of the account. Formulize your cells in each spreadsheet, carry the amounts, if necessary from one sheet to another by formulas. Assume that prior year's accounts are still open for reporting purposes. Make sure that on Financial Statement pages (page 4 and 6)adjustment columns' debits are equal to credits. \begin{tabular}{|l|l|l|l} \hline Accumulated Depreciation's ending balance at December 31,2010 is & $5,175,000 & . Building and equipment \\ \hline account's ending balance at December 31,2010 is & $40,270,000. Accordingly please calculate \end{tabular} the disposed-sold equipment's acumulated depreciation written off and how much cash was obtained from the sale. Complete the entry on page 5. President's transfer of the land to the company must be done from the fair value in the market. 2009 Adjusting entries should be carried forward (redone) to 2010 in order to update the opening balances in 2010. Do not include dividents received on your cash flow because it has already been included in your net income (a glitch in the problem). Go step by step: 1.Do the adjusting entries for 20X09 (page 4). 2.Produce the balance sheet for 2009 (page 5). 3.Carry the 2009 adjustments to 2010 to update the opening balances (page 6). 4.Find 20X10 adjusting entries and other required balances and entries for 2010 (page 6). 5.Complete financial statements on page 7: a.Transfer the 2009 restated balance sheet figures to column J. b.Write 2010 raw balance sheet figures on column E. c.Write the 20X10 raw income statement figures on column E below. d.Write the adjusting entries to update the 2010 balance sheet and income statement. e.Obtain the restated-adjusted balances both for balance sheet and income statement for 2010 (page 7). f.Calculate the differences on balance sheet by substracting 2010 figures from 20X09's on column K. 6.Complete the cash flow on page 8 . start from restated net income figure on page 7. 7.Please do not forget that your cash balances (January 1 and December 31,2010 ) should reconcile to your cash flow statement. 8.Reference column on pages 5 and 7 refers to your adjustmenting entries. 9.Plug in figure on page 6 does not require any entry just add it to Retained Earnings. ( 1 provide those numbers in the page 6) 10. Write a memo to the client in sheet 9. (instructions in sheet 9) MC TRAVEL INC. Balance Sheet December 31, Note: The statements before any adjustments. \begin{tabular}{l} Adjustment entries: \\ Land adjusting entry. \\ \hline 1) \\ \hline \\ \hline \end{tabular} Adjustment entries in 20X10: Land adjusting entry carried from last year to update the opening balances in 2010. 1) Adjustment for prior year end's accumulated depreciation, income tax payable and retained earnings. Carried in 2010 to update 2009 opening balances. 2) Cepreciation adjusting entry in 2010. 3) Depreciation adjusting entry in 2010. Plugged in number to update the Retained Earnings as at December 31, 2010. \begin{tabular}{|l|l|} \hline Credit adjustment in 2010 Income Statement from entry (3) above : & $750,000 \\ \hline Debit adjustment in 2010 Income Statement from entry (4) above: & $225,000 \\ \hline Plugged in number to RE to show the effect of adjustments on net income : & $525,000 \\ \hline \end{tabular} Cash Accumulated depreciation of the equipment sold Cost of the equipment Gain from sale of the equipment