Related Course Objectives: Describe the system of accounting standards and principles to utilize these in the preparation and communication of relevant financial information. Apply the accrual method of accounting and the accounting . Prepare a balance sheet and income statement for 4 Apply generally accepted principles when accounting for cycle in preparation of financial statements merchandising and service organizations cash dividends and preparation of journal entries to record the issuance of stock Assignment Description and Instructions Suppose you are a part of a group of students from a prominent university and were sent out as a team to work with a leading merchandizing company as a part of a work experience program. The team having been introduced to the general manger was told that the Accountant who normally prepares the financial statements has suddenly resigned and there is no one available to prepare the company's financial statements which are now due. As aspiring university students, you and your group members have expressed an interest in taking on the task. As a group, you are required to collaborate and apply the accrual basis of accounting in the preparation of the company's financial statements. analyse the problem at hand then Each member of the varying groups will be required to attend a special BBC session to be organized by your tutor. Your tutor will select one or two groups to jointly do a presentation of no more than two (2) hours on the assignment. Each student must be present at this specially designed session to earn marks allotted and you tutors will provide further details. The problem to be resolved: S&S Supplies financial year is January to December and the following unadjusted trial balance and accompanying data were present for the year ended December 31, 2016. S&S Supplies Trial Balance December 31, 2016 A/C Name Trial Balance Debit Credit Rent Note 379 250 Rent 6,289,250 16 289 250 The following additional information is available at Dec 31 2016 oSupplies on hand at Dec 31, 2016 amounted to $10,000 Gi) $80,000 of the prepaid rent expired as at December 3 2016. tiin The Furniture was purchased on January 1, 2016 and is being depreciated over five (5) years on the double declining method of deprecation down to a residue of S100,000 Giin The Leasehold Improvements have an estimated useful life of five (5) years and are being depreciated on the straight-line method down to a residue of $20,000 Salaries earned by employees not yet paid amounted to $120,000 at December 31,2016 ea Accrued interest expense due on the notes payable at December 31,2016 amounted to S5,250 10:25 AM WhatsApp accounts work.doc v) Salaries earned by employees not yet paid amounted to (vi) Accrued interest expense due on the notes payable at (vii) A physical count of inventory at December 31, 2016, reveals (vii After analyzing the accounts in the accounts receivable T-Mobile @ 1 36% .- Done $120,000 at December 31,2016 December 31,2016 amounted to $5,250 $100,000 worth of inventory on hand subsidiary ledger using the aging method, the company's management estimated that uncollectible accounts will be $30,000 Required: 1. Prepare the necessary adjusting journal entries on December 31, 2. Prepare the multi-step Income Statement for the year ended 3. Prepare the Statement of Owner's Equity for the year ended 4. Prepare the Balance Sheet as at December 31, 2016 2016 December 31, 2016 December 31, 2016