BAF 3M1 - Culminating Performance for ARC Corporate Cleaners Assignment

Assignment Task

Instructions

Please read the entire assignment before starting.

On the Excel workbook, you will find an updated trial balance for your commercial cleaning business called ARC Corporate Cleaners. This trial balance covers the months of June 1, 2021 all the way through to April 2022. Your task will be to enter the May 2022 transactions and complete all the required year-end financial statements.

Complete the following

• List 5 new transactions that are to be added to the existing fifteen (15) May 2022 transactions that are found on the next Be creative, but do not add any new accounts .
• Record the 20 transactions for the month of May 2022 in the
• Post the 20 transactions to the Ledger (T-accounts). Do not forget to include your opening balances from the trial
• Complete the updated trial (This goes on the Worksheet)
• Complete the Adjusting Entries . Record these entries in the
• Prepare the 8-Column Work Sheet that covers the entire
• Prepare the closing entries and record these on journal
• Prepare a post-closing trial
• Prepare an Income Statement for the
• Prepare a classified Balance Sheet for the year .
• Compose a business letter to a potential investor or financial organization. Purpose: After the first year of business, you would like to expand the business but will need additional money to fund your growth plan. This letter will outline why you think your business is a success up to this point as well as ask for a loan to expand the business. Include a convincing rationale to support your request.

Adjustment Information

The following adjustments are to be made once all of the May 2022 transactions have been completed and balanced (Trial Balance). This trial balance is to be entered on The Worksheet.

• Late Invoice: An Invoice arrived for $300 worth of cleaning supplies on June 4, 2022. These supplies were shipped to ARC Corporate Cleaners on May 19, 2022, so they were included in the year-end inventory
• Supplies : As of May 31, 80% of the supplies were used up.
• Insurance: The one-year Insurance policy was purchased on July 1,
• Unearned Revenue : Arc Corporate Cleaners was not able to complete a project that was originally paid for by a customer on May 5 and entered as a sales transaction. This work will be completed in July 2022. The amount of work outstanding is $1,600.
• Depreciation: For the equipment use the declining balance The CRA depreciation rate is 20% per year. For the truck, use the straight-line method. The truck is estimated to last 5 years with a salvage value of 20%.