Prepare the financial statements Entertainment Centre Ltd. reported the following data at March 31, 2017, with amounts adapted and in thousands: Retained Earnings, March 31, 2017: $1,300 Accounts Receivable: $27,700 Net Revenues: $174,500 Total Current Liabilites: $53,600 All other expenses: $45,000 Other current assets: $4,800 Other assets: $24,300 Cost of goods sold: $128,000  Cash: $900 Property equipment, net: $7,200 Share Capital: $26,000 Inventories: $33,000 Long-term Liabilites: $13,500 Dividends: $0. You are the CFO responsible for reporting Entertainment Centre Ltd. results. Use these data to prepare an income statement for the year ended March 31, 2017, the statement of retained earnings for the year ended March 31, 2017 and the classified balance sheet at March 31, 2017. Use the report format for the balance sheet. Draw arrows linking the three statements to explain the information flows between the statements. Prepare the closing entries Use the Entertainment Centre Ltd. data given above to make the company's closing entries at March 31, 2017. Then set-up a T-account for Retained earnings and post to that account. Compare the Retained Earnings' ending balance to the amount reported on Entertainment Centre Ltd.'s statement of retained earnings and balance sheet.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Prepare the financial statements

Entertainment Centre Ltd. reported the following data at March 31, 2017, with amounts adapted and in thousands:

Retained Earnings, March 31, 2017: $1,300

Accounts Receivable: $27,700

Net Revenues: $174,500

Total Current Liabilites: $53,600

All other expenses: $45,000

Other current assets: $4,800

Other assets: $24,300

Cost of goods sold: $128,000 

Cash: $900

Property equipment, net: $7,200

Share Capital: $26,000

Inventories: $33,000

Long-term Liabilites: $13,500

Dividends: $0.

You are the CFO responsible for reporting Entertainment Centre Ltd. results. Use these data to prepare an income statement for the year ended March 31, 2017, the statement of retained earnings for the year ended March 31, 2017 and the classified balance sheet at March 31, 2017. Use the report format for the balance sheet. Draw arrows linking the three statements to explain the information flows between the statements.

Prepare the closing entries

Use the Entertainment Centre Ltd. data given above to make the company's closing entries at March 31, 2017. Then set-up a T-account for Retained earnings and post to that account. Compare the Retained Earnings' ending balance to the amount reported on Entertainment Centre Ltd.'s statement of retained earnings and balance sheet.

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