Tiffany Bakery and Catering Services $($TBCS$)$

Founded in $2017$ by Tiffany Xu in the kitchen of her house, Tiffany Bakery and Catering Services

$($TBCS$)$ quickly grew into one of the preferred event planning and catering businesses in North

York, ON$.$ TBCS offers unique event experiences that fulfill the dynamic needs of the clients.

During COVID$-19$ lockdowns, TBCS switched its strategy and started to offer pre$-$packed meals

with pickup options. Tiffany, the owner and head chef, was grateful that her business was able

to come out of the pandemic with a more reliable catering company than before.

Tiffany has asked you to create a set of financial statements for the year of $2023,$ excluding the

statement of cash flows, as she feels she has a good understanding of her cash spending as

compared to her budget. Tiffany will use these statements for her own use to assist with

planning for the future of the company. The company$$s year$-$end is December $31.$

Exhibit $1$ includes an unadjusted trial balance at December $31,2023$

Required:

$1.$ Prepare the journal entries required for $2023,$ including any year$-$end adjusting entries.

Provide an explanation of why each entry is required and how it was calculated $($you can

show your calculation in the Excel spreadsheet$).$ The company prepares annual adjusting

entries.