I thought I should send you a list of the transactions and events that happened from December 1 to December 15:

Dec. 1: Issued chq. #217 for $4,200 to Ms. Jackson (the music store owner)

for 6 months of rent in advance. Due to a change in circumstances, the monthly rent has increased and must now be paid in 6-month blocks. [debit the whole amount to 'Prepaid Rent'].

Dec. 1: The monthly loan payment is made to the bank. The payment is automatically withdrawn. The payment is comprised of a $200 principal

amount plus the previous month's interest. The previous month's interest amount is $33.

[Debit the interest portion to 'Interest Payable']

Dec. 3: Received 15 copies of her method book from the local printers store. The total cost is $195 and the invoice is due in 30 days.

Dec. 5: Received $92 cash which is for lessons given in November but not paid for until Dec. 5.

Dec. 6: Received cash of $5,250 from students paying in advance for lessons to be provided in December.

Dec. 12: Sold 13 copies of her piano method books to Woodwards music

on account for a total amount of $299; terms, net 30 days.

[Rose will use FIFO to track her inventory of method books. You should set up a FIFO subsidiary inventory schedule (like we did in class) to determine the cost of goods sold for this and later inventory transactions. NOTE: Her Nov. 30 inventory consisted of 9 books that cost $12 each. Use the tab labelled "FIFO Schedule" in the Excel worksheets provided].

Dec. 14: Wrote Chq #218 for $173.25 to the East Vancouver Herald Newspaper Company for a small advertisement that appeared last week. [Debit 'Accounts Payable']

Copyright 2022 Terry Kosowick and Brad Steinbart. All rights reserved.

Thanks.

Yours Truly, Rose Temple

Part 4 Instructions, continued:

Next, post the transactions you journalized to the general ledger.

After that, you will record the remaining Decmber transactions (based on the following email you receive from your supervisor), post the transactions to the general ledger, and prepare an unadjusted trial balance at December 31, 2023.

Email from your supervisor:

Hi [Student Name],

I have met with Rose and she has provided the following list of transactions for the remainder of December. Please go ahead and record them, post them, and prepare the unadjusted trial balance at December 31.

Dec. 16: Rose will put her own digital piano into the business so that she can have 3 pianos in the studio for group lessons. The piano originally cost her $1,980 and the estimated fair market value today is $800.

Dec. 17: Purchased office supplies on account costing $73.45. The amount is due in 30 days.

Dec. 18: Received 18 copies of her method book from the local printers store. The total cost is $252 and the invoice is due in 30 days.

Continued, next page...

Dec. 19: Issued chq # 219 for $279.50 to pay for December advertising in a local business newsletter.

Dec. 20: Withdrew $3,000 from the business bank account for personal living costs.

Dec. 22: Sold 16 copies of her piano method books to Paul's music on account. The selling price per book is $23; terms, net 30 days.

Dec. 29: Issued chq. #220 for $95.38 to pay for having computer viruses from the business laptop. [Debit "Repairs Expense"]