Q1. A:

Management prepares monthly financial statements. The following information is for January 31, 2020:

1. At January 31, the company owed its employees $4,000 in salaries, to be paid on February 4.

2. Monthly depreciation on the companys vehicles was $200.

3. The company paid $3,000 for a 1-year insurance policy on January 1, 2020.

4. Revenue earned but not yet recorded totaled $4000.

5. Interest Payable for the company mortgage as at the end of January is $600.

Required: Using the above additional information, journalize the adjusting entries that should be made by the company on January 31, 2020.

PART B

The following Financial Statements (in millions $) for Amalgam Inc. for 2015 and 2016 are presented below:

a) Prepare the companys Cash Flow Statement for December 31, 2016