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In order to complete the assignment, you are required to do the following: 1) Analyze the events provided below and prepare the applicable journal entries using the template provided on UofR Courses. 2) Create financial statements for period ending Feb 1, 2019: Using the journal entries create the following financial statements: Statement of Income (single step format) Statement of Financial Position (NO current and non-current classification) Statement of Retained Earnings Statement of Changes in Equity 3) Print out the cover page and staple the work completed into one package. The package submitted should include the following: Cover page (this page goes first). Required journal entries. Financial State (single step format) Statement of Income (single step format) Statement of Financial Position (NO current and non-current classification) Statement of Retained Earnings Statement of Changes in Equity STAPLE the pages together

Events: The business you are doing the accounting for is Milu Inc. (Milu). Milu is a restaurant located in Regina. Analyze the following events and prepare any applicable journal entry that is required: 1) 2) 3) 4) 5) 6) Jan 1 - Milu issued 1,000 shares in total to 2 different shareholders in exchange S15,000 total cash. Jan 1 - Received a bank loan of S56,000 from TD Bank. Jan 2 - Paid S35,000 of cash to purchase kitchen equipment Jan 3 - Paid $10,000 of cash to purchase restaurant furniture. Jan 4 - Paid $2,000 of cash to a landlord for rent. Rent was for the month of Jan 2019 Jan 5 - Purchased $20,000 of inventory from 3 different vendors of different vendors. The inventory purchased was as follows: inventory Purchased Units Pounds Bottles) Type Cost per Unit Total Noocle, Rice, Vegetable 2.400 1,600 800 4 9.600 6 9,600 800 Meat Bottled Drink Total 4,800 11 20,000 .Milu paid the Noodle, Rice, Vegetable vendor with cash. Milu paid the Meat vendor with cash. Milu was able to pay the “Drink vendor at a time in the future. Shelf life: Typa (Days) 60 Bottled Drink 7) Jan 6- Paid $1,000 of cash for advertising that will take place during the month of Jan 2019.

Jan 7 to 28 - Over the month Milu sold the following food and drink. All cash related to these sales was received. 8) Inventory-Sold Units (PoundsBottles) Type Sales Prices Total Noodle, Rice, Vegetable Meat Bottled Drink 1,900 1,600 700 5 9,500 10 16,000 3 2,100 Total 4,200 18 27,600 Business Administration 285 Assignment #1 Winter 2019 9) Jan 29 - Paid $6,000 in cash for wages to its employees. 10) Jan 29 - Paid $4,000 of cash to its shareholders via dividends.

11) Feb 1- Milu wanted to get insurance for its operations. On Feb 1 they paid S5,500 for insurance that covers the following months: Month Cost Feb 2019 Mar 2019 Apr 2019 May 2019 Jun 2019 Jul 2019 Aug 2019 Sep 2019 Oct 2019 Nov 2019 Dec 2019 500 500 500 500 500 500 500 500 500 500 500 Total 5.500 12) Feb 1 - Paid $700 of cash to the vendor(s) they owed money too.

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Journal of Milu Inc. (Milu) Date of Entry Milu Issued 1,000 shares in total to 2 different shareholders in exchange for $15,000 in cash January 1, 2019 Particulars Debit Credit Cash $15,000 To Common Stockholders Equity $ 15,000 Received a bank loan of $56,000 from TD Bank January 1, 2019 Cash $56,000 To Loan (Received from TD Bank) $56,000 Paid $35,000 of cash to purchase kitchen equipment January 2, 2019 Kitchen Equipment $35,000 To Cash $ 35,000 Paid $10,000 of cash to purchase restaurant furniture January 3, 2019 Furniture $10,000 To Cash $ 10,000Paid $2,000 of cash to a landlord for rent for the month of january 2019 January 4, 2019 Rent $ 2) To Cash $ .0) Purchased $20,000 of inventory from different vendors which includes Noodle, Rice, Vegetable for $9,600 in cash, Meat $9,600 in cash and Bottled Drink $800 in credit. $20,000 To Cash To Accounts Payable $ 19,200 $800 Paid $1,000 of cash for advertisement for the month of january 2019 January 6, 2019 1,000 Advertisement To Cash $ 1,000 Milu sold Noodle, Rice, Vegetable for 9,500, Meat $16,000 and Bottled Drink $2,100. All cash related to theses sales were received. January 7-28, 2019Cash $27,600 To Food & Beverge Sales $ 2A,DPaid $6,000 in cash for wages to its employees January 29, 2019 Wages $ 6,000 To Cash Paid $4,000 of cash to its shareholders via dividends January 29, 2019Diviends $ 4,000 To Cash $4,000 Paid S5,500 of cash for the insurance of its business from Feb. 2019 to Dec. 2019 February 1, 2019Prepaid Insurance 5,500 To Cash $ 5,500 Paid $700 of cash to the Meat vendor February 1, 2019 Accounts Payable $ 700 To Cash S 700Valuation of Food & Beverage Inventory of Milu Inc. as at February 1, 2019 Particulars Inventory Purchased Noodle, Rice, Vegetable Meat Bottled drink Total Inventory (A) Quantity Rate Amount 2,400 4 $ 9,600 1,600 6 9,600 800 1 $800 $20,000 Cost of Inventory Sold Noodle, Rice, Vegetable Meat Bottled drink Total Cost of Inventory Sold (B) 1,900 4 7,600 1,600 6 9,600 700 1 700 $17,900 Closing Inventory as at February 1, 2019 (A) - (B) $ 2,100Statement of Financial Position of Milu Inc. (Milu) as at February 1, 2019 Assets Kitchen Equipment Furniture Inventories Prepaid Insurance Cash and Cash Equivalent Amount 35,000 10,000 2,100 5,500 15,200 Total Assets 67,800 Equity and Liabilities uI Retained Earnings Total Equi 15,000 3,300 11,700 Loan (Received from TD Bank Accounts Payable Total Liabilities 56,000 100 56,100 Total Equity and Liabilities 67,800Milu Inc. (Milu) Statement of Changes in Equity ShareRetained Total Particulars Capa Earnings Equity Beginning Balance as on January 1, 2019 15,000 $ Net Income Dividends Ending Balance as on February 1, 2019$ 15,000 $ -3,300$ 11,700 S 15,000 $-4,000-4,000

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