This is a simulation of the accounting cycle for a service business.

You are the professional accountant for Smith Heating and Electric owned by Mike Smith. You have the task of completing the accounting cycle and preparing the financial statements for Smith Heating and Electric which provides mechanical service and installation to both home and business clients $($furnace installs and repair, electric systems, etc$).$ The revenue they earn comes from service revenue and the sales of equipment $($furnace$,$ water heaters, electrical equipment, etc.$).$ The company uses the Periodic Inventory method. Note: This business has a fiscal year ended December $31,2019.$ When taxes are applicable, you will be given this information. HST is $13\%.$ You will make the adjustments and closing entries for the year.