Puppy Walk Inc. is a dog walking service and retailer of dog supplies and food operating out of Vancouver. The founder, Doggy Higgins is the president and owns 100% of the common shares. The companys yearend is December 31. The inhouse bookkeeper had a car accident and is unfortunately not able to prepare the 2019 financial statements. It is now January 2020 and you have been asked to make any required adjusting journal entries and prepare the 2019 financial statements. The unadjusted trial balance for Puppy Walk is contained in the appendix: The following information has been made available for you to make any required adjusting entries. 1. The following invoices were received in January 2020 and were not accrued in 2019. Legal fees $1,200 Janitorial services $1,200 Air conditioner repairs $400 New photocopier $3,200 2. You noticed a purchase order placed by Puppy Walk was placed for a new warehouse forklift in November 2019 that will be delivered in April of 2020. At time the order was placed a $4,000 deposit was provided and it was charged to the equipment account. 3. 15% of the bank loan will be paid in 2020. The remainder will be paid over the following four years. No payments on the principal of the loan were made in 2019. 4. The interest rate on the bank loan is 7% per annuum paid quarterly. There was no payment made for the last quarter of the year 5. Depreciation on the current equipment is $21,000. 6. The now photocopier was delivered and operating November 30, 2019 and has a life of 4 years with a residual value of $400. Copyright Steve Gibson 2020 . 7. The insurance was purchased August 31, 2019 and covered two years from that date. 8. A physical review of some inventory in the warehouse that was purchased for $7,000 is now obsolete and worthless. (chapter 7 of textbook) 9. During 2019 an old photocopier that had an original cost of $3,000 and accumulated depreciation of $1,700 was thrown out. (chapter 8 of textbook). No entry was recorded at the time. 10. $11,000 of staff salaries were owed at the end of the year as well, Doggy Higgins is going to be paid a $10,000 bonus in January 2020. 11. A physical count of the supplies inventory indicated the value at year-end was $4,200. 12. In October a customer paid a $4,500 deposit for a custom dog cage to be delivered in January. At the time, this was recorded as sales. 13. Income is taxed at 25%. In Excel, prepare all the necessary journal entries, adjusted trial balance, closing entries, income statement, statement in changes in shareholders equity and balance sheet for December 31, 2019 and year ending December 31,2019.

Trial Balance as December 31, 2019 Debit Credit Cash 500,000 Accounts Payable 95,000 Accounts Receivable 270,000 Equipment 372,000 Accumulated Depreciation equipment 100,200 Advertising expense 25,000 Bank loan 300,000 Sales 2,650,000 Common shares 147,450 COGS 1,400,500 Dividends declared 150,000 Goodwill 185,000 Income tax expense interest expense-bank loan 15,750 inventory 320,000 Prepaid insurance 24,000 Rent expense 100,000 Retained earnings 452,000 Salaries expense 370,000 Bonus expense Supplies Inventory(A) 12,400 Customer deposits (L) Depreciation expense Legal fees Repairs expense interest payable Deposit (A) Insurance expense salary payable bonus payable supplies expense Loss on disposal of equipment Janitorial services Current portion of bank loan Income tax payable Total 3,744,650 3,744,650