Question

				Adjusted Trial Balance
Account Name		Debit		Credit		Debit		Credit
cash		$ 35,000.00				$ 35,000.00
accounts receivable		$ 5,600.00				$ 6,689.00
food inventory		$ 21,000.00				$ 21,000.00
merchandise inventory		$ 62,500.00				$ 62,500.00
prepaids		$ 3,400.00				$ 7,500.00
computers		$ 30,000.00				$ 30,000.00
accumulated amort-computers				$ 12,000.00				$ 18,000.00
bakery equipment		$ 90,000.00				$ 90,000.00
accumulated amort-bakery eqpmt				$ 18,000.00				$ 27,000.00
furniture & fixtures		$ 150,000.00				$ 150,000.00
accumulated amort-furniture				$ 15,000.00				$ 22,500.00
accounts payable				$ 18,000.00				$ 18,000.00
accrued liabilities								$ 1,700.00
interest payable								$ 17,600.00
dividend payable								$ 5,000.00
long term loan				$ 220,000.00				$ 220,000.00
common shares				$ 50,000.00				$ 50,000.00
retained earnings				$ 22,000.00				$ 22,000.00
food revenue				$ 468,500.00				$ 469,589.00
internet revenue				$ 127,000.00				$ 127,000.00
merchandise revenue				$ 103,000.00				$ 103,000.00
food expense		$ 240,000.00				$ 240,000.00
internet expense		$ 54,000.00				$ 54,000.00
electricity expense		$ 65,000.00				$ 65,400.00
telephone expense		$ 20,000.00				$ 20,400.00
interest expense						$ 17,600.00
salary expense		$ 200,000.00				$ 200,900.00
insurance expense		$ 9,000.00				$ 4,900.00
supplies expense		$ 8,000.00				$ 8,000.00
depreciation expense						$ 22,500.00
rent expense		$ 60,000.00				$ 60,000.00
dividend expense						$ 5,000.00
		$ 1,053,500.00		$1,053,500.00		$1,101,389.00		$1,101,389.00
	INCOME STATEMENT
	Income:
	food revenue		$ 469,589.00
	internet revenue		$ 127,000.00
	merchandise revenue		$ 103,000.00		$699,589.00
	Expenses:
	food expense		$ 240,000.00
	internet expense		$ 54,000.00
	electricity expense		$ 65,400.00
	telephone expense		$ 20,400.00
	salary expense		$ 200,900.00
	insurance expense		$ 4,900.00
	supplies expense		$ 8,000.00
	depreciation expense		$ 22,500.00
	rent expense		$ 60,000.00		$676,100.00
	Operating Income				$ 23,489.00
	Interest expense				$ 17,600.00
	Net Income				$ 5,889.00

BALANCE SHEET
ASSETS			LIABILITIES
Current Assets:			Current liabilities:
Cash	$ 35,000.00		Accounts payable		$18,000.00
Accounts receivable	$ 6,689.00		accrued liabilities		$ 1,700.00
Food inventory	$ 21,000.00		interest payable		$17,600.00
Merchandise inventory	$ 62,500.00		dividend payable		$ 5,000.00	$ 42,300.00
Prepaids	$ 7,500.00	$132,689.00	Long term liabilities:
Fixed Assets:			Long term loan			$220,000.00
Computers	$ 30,000.00		Equity:
Less accumulated depn	$ 18,000.00	$ 12,000.00	Common Shares		$50,000.00
Bakery equipment	$ 90,000.00		Retained earnings		$22,889.00	$ 72,889.00
Less accumulated depn	$ 27,000.00	$ 63,000.00
Furniture and fixtures	$150,000.00
Less accumulated depn	$ 22,500.00	$127,500.00
		$335,189.00				$335,189.00

o assess the financial reporting landscape,considering the user needs, constraints, and businessenvironment;

o identify the issues;

o analyze the issues (qualitatively andquantitatively); and

o provide a recommendation for each issueidentified in the case.