Complete Accounting Cycle.

Song Princess is a local business providing piano lessons to children. The business employs a temporary Accounts Clerk who prepared the following unadjusted Trial Balance as at 31 December 20X6: Song Princess Unadjusted Trial Balance As at 31 December 20X6 Debit Credit $ $ Insurance Payable 2,500 Salaries Payable 12,700 Accounts Payable 4,200 Cash 28,000 Supplies 3,000 Accounts Receivable 6,800 Motor Vehicle -Van 40,000 Accumulated Depreciation -Van 21,000 Capital 30,000 Drawings 2,000 Fees Earned 11 1,700 Salaries Expense 54,000 Insurance Expense 7,200 Rental Expense 31,400 Utilities Expense 5,500 Supplies Expense 4,200 Total 182,100 182,100 The following business transactions that occurred in December 20X6 were n_ot recorded nor posted in the above Trial Balance: 1) The van costing $40,000 was bought on 1 January 20X0. The company has a policy to depreciate all xed assets using the straight line method. The van is assumed to have useful life of 10 years with a residual value of $5,000. No depreciation has been recorded for the current year. 2) On 1 December 20X6, $1,200 was collected from students for piano lessons which would be conducted once per month from December 20X6 to March 20x7. 3) The Accounts Clerk discovered that the December 20X6 salary for a piano teacher amounting to $2,300 was not recorded. The salary will only be paid by the business in January 20x7. 4) Supplies on-hand was counted and determined to be $2,200 as at 31 December 20X6. 5) On 31 December 20X6, the business paid $6,600 for January 20X? to March 20x7 rental. 6) On 31 December 20X6, the owner of Song Princess gave the business' van to his son as a birthday gift. Reguired: a) For each of the above transactions, record the journal entries for the yearended 31 December 20X6. No narration is required. b) Prepare the adjusted Trial Balance as at 31 December 20X6. c) Prepare the properly classied Statement of Comprehensive Income for the year ended 31 December 20X6. d) Calculate the Total Assets, Total Liabilities and Total Owner's Equity section of the Statement of Financial Position as at 31 December 20X6. e) Briey comment on whethe 5 operating efficiently for the year ended 31 December 20X6 to increase prot. f) Why do you think busines to pay high rental fees even when the profit is low