Edward Snips started a haircutting business on January 1, 2019. The business has a December 31 year end. During the month of January, the following events occurred: Jan. 1 Bank deposit for $15,000 investment by the owner, Edward Snips, plus contribution of $5,000 of hairdressing equipment and $2,000 of hairdressing supplies. 1 Wrote Cheque #1 to Sassoon Plaza Property Management for $2,520.00 ($2,400.00 plus GST $120.00) for January and February rent ($1,200 before tax per month). Wrote Cheque #2 to United Insurance for $1,260 ($1,200.00 plus GST $60.00) for one year of prepaid insurance. 5 Received Invoice 4493 from The Hair Lair for the purchase of hairdressing supplies for $500.00 plus GST $25.00 and PST $35.00 = $560.00 payable within 30 days. Issued Invoice #1001 to Selma Karen for a haircut $170 and highlights (colour) $235 = $405 plus $20.25 GST for a total invoice of $425.25. s Issued a cash receipt to Hermione Cecchetti for cash received in payment of providing highlights $235.00 + $11.75 GST = $246.75 . Wrote Cheque #3 for $3,150 to Tress Bien for the purchase of shampoo station chairs (hairdressing equipment) $3,000.00 plus GST $150.00. 10 Received Cheque #145 from Selma Karen for payment on account. Edward Snips took $120 of hairdressing supplies for personal use. Required Part 1 (10 marks): Prepare the journal entries to record the above Required Part 2 (10 marks): Based on the information in Part 1 and the following, Record the adjusting entries at December 31: The hairdressing equipment is expected to have a useful life of 6 years with a $800 residual value - use straight line depreciation. The value of Hairdressing supplies on hand at December 3, is $1,200. Edward Snipes did a large hairdressing job for an upcoming wedding on December 30. He billed the wedding $1,500 (no taxes) but had not received payment by December 31. Required Part 2 (10 marks): Based on the information in Part 1 and the following, Record the adjusting entries at December 31: The hairdressing equipment is expected to have a useful life of 6 years with a $800 residual value - use straight line depreciation. The value of Hairdressing supplies on hand at December 3, is $1,200. Edward Snipes did a large hairdressing job for an upcoming wedding on December 30. He billed the wedding $1,500 (no taxes) but had not received payment by December 31. Required Part 3 (5 marks): What is the ending balance in the following accounts after all transactions are recorded and posted: Cash Accounts Receivable Prepaid Rent Hairdressing Equipment GST paid on purchases
