During 2014, you were hired as the Chief Financial Officer for MC Travel Inc., a fairly young travel company that is growing quickly. A key accounting staff member has prepared the financial statements, but there are a couple of transactions that have not been recorded yet because she is waiting for your guidance regarding how these transactions should be recorded. In addition, the staff member is not confident in preparing cash flow statements, so you have been asked to prepare this statement for the 2014 year. MC Travel INC. reports under ASPE. ATTACHMENT PREVIEW Download attachment The following Cumulative Coverage problem is on page 1561 of the text book.docx The following Cumulative Coverage problem is on page 1561 of the text book. However the method of solution requires the indirect method. During 2014, you were hired as the Chief Financial Officer for MC Travel Inc., a fairly young travel company that is growing quickly. A key accounting staff member has prepared the financial statements, but there are a couple of transactions that have not been recorded yet because she is waiting for your guidance regarding how these transactions should be recorded. In addition, the staff member is not confident in preparing cash flow statements, so you have been asked to prepare this statement for the 2014 year. MC Travel INC. reports under ASPE. The transactions that have not been recorded yet are as follows. On January 1, 2012, the company purchased a small hotel property in Miami for $50 million million in cash and issuing paying $10 a 5% $40 million bond at par to cover the balance. The bond principal is payable on January 1, 2022. When you were hired, and began to review the financial information from previous years, you quickly realized that the land portion of the total purchase price had been capitalized with building, and depreciated. Depreciation has been incorrectly recorded on the building for 2012 2013 and 2014 , and the land is still included in the building account. The land portion of the purchase was appraised at $15 million in 2012, and the land is currently worth $17 million. The cost of the property is to be amortized over a 20 year period using the straight-line basis, and a residual value of $5 million. The company’s tax rate is 30% . During 2014, the president, who is also the principal shareholder in the business, transferred ownership of a vacant piece of land in the Carribbean to the company. A hotel will be constructed on this property beginning in 2015. The cost when the president purchased this property was $10 million and the fair market value, based on the professional appraisal, at the time it was trasferred to the company was $25 million. The president was issued 50,000 common shares in exchange for this land. This transaction has not yet been booked. Additional information that you have gathered to assist in preparing the cash flow statement is as follows: In 2014, equipment was purchased for during the year. Investment income includes a dividend $250,000 . In addition, some equipment was disposed of $150,000 received on the temporary investment. Interest income of $106,000 was reinvested in temporary investments. Following are the financial statements for MC Travel Inc. For 2014 and 2013 fiscal years. (Please see financial statements on the text book on page 1561 &1562.) Instructions: From the information on the next page, complete the necessary adjusting entries to record the transactions that have not been booked, and prepare the revised balance sheet and income statement for the year, keeping in mind that comparative figures will need to be restated. Once this is complete, prepare a statement of cash flows in good form using the indirect method for the year ended December 31, 2011. Assume all transaction amounts have been reported in CAD$. Hints: Please set the formulas for restated-updated columns in accordance with the DR or CR character of the account. of Formulize your cells in each sp