(Following the steps of the accounting cycle, LO 1, 3, 5, 6) Use the information about Harry’s Appliance Emporium Ltd. (HAEL) provided in Problem P3-9 to do the following:

Prepare all necessary transactional journal entries for the year ended August 31, 2005.

. Prepare T-accounts and post each journal entry to the appropriate T-account. Prepare and post adjusting journal entries to their appropriate T-accounts. . Prepare a trial balance as of August 31, 2005.

. Prepare a balance sheet for HAEL as of August 31, 2005 and an income state- ment and statement of retained earnings for the year ended August 31, 2005. Prepare the closing journal entry and post the closing entry to the appropriate T-accounts.

g- Prepare a trial balance as of August 31, 2005 that includes the closing entry.
h. Harry is considering expanding HAEL to include a wider range of products.
Harry has approached you about purchasing common shares of HAEL to help finance the expansion. Based on your examination of the statements, what can you tell about HAEL that would be useful to your decision to invest? Also, list five questions you might ask Harry that would help you use the financial statements more effectively.