Zip Zap Retail Trading Company presented the following unadjusted trail for the financial year ended December 31st, 2016.

A/C Name	DR $	CR $
Cash	620,000
Accounts Receivable	410,000
Merchandise Inventory	330,000
Store Supplies	190,000
Prepaid Electricity Expense	65,000
Building and Equipment	800,000
Accumulated Depreciation Building and Equipment		237,000
Accounts Payable		435,000
Interest Expense Payable
Traveling Expense Payable
Unearned Sales Revenue		220,000
Note Payable-Long Term		345,000
Zip Zap, Capital		1,578,900
Zip Zap, Withdrawal	35,000
Sales Revenue Earned		995,000
Sales Discount	35,000
Sales Returns and Allowances	42,100
Cost of Goods Sold	585,000
Salaries Expense	300,000
Telephone Expense	33,000
Depreciation Expense Building and Equipment
Electricity Expense	138,000
Store Supplies Expense
Insurance Expense	85,000
Bad Debt Expense	49,500
Travelling Expense	62,000
Interest Expense	31,300	________
Total	3,810,900	3,810,900

The following additional information was made available at December 31, 2016

1. Unearned sales revenue, still not earned at December 31, 2016 amounted $120,000.

2. The prepaid electricity includes $15,000 which expired during the year.

3. The Building and Equipment has an estimated life of ten (10) years and is being depreciated on the straight-line method of depreciation, down to a residual value of $10,000.

4. Store supplies unused at the end of the period amounted to $144,800.

5. Interest expenses not paid as at December 31, 2016 amounted to $4,500

6. Accrued travelling expense amounted to $2,300 at December 31, 2016.

7. A physical count of inventory at December 31, 2016, reveals $315,000 worth of inventory on hand.

Required:

1. Prepare the necessary adjusting entries and adjusted trial balance on December 31, 2016 (20 marks)

2. Prepare the companys financial statements for the year ended December 31, 2016.

(40 marks)

3. Prepare the companys closing entries and post-closing trial balance for the year ended December 31, 2016 (20 marks)

Question 2

The following information is needed to reconcile the cash balance for Monique Company.

A deposit of $5,800 is in transit.

Outstanding checks total $1,500.

The book balance is $9,800 at February 28, 2018.

The bookkeeper recorded a $1,740 check as $17,400 in payment of the current month's rent.

The bank balance at February 28, 2018 was $21,000.

A deposit of $400 was credited by the bank for $4,000.

A customer's check for $3,700 was returned for nonsufficient funds.

The bank service charge is $60.

Based on this information, prepare a bank reconciliation for Monique Company as of February 28, 2018. (20 marks)