It is now November 2022 and your business is growing quickly and the results have been quite successful. Your business has purchased more equipment. It has also added another revenue stream: selling juicing machines to the public. You have a friend at Morton Manufacturing that has agreed to sell you high-quality juicing machines at a wholesale price so you can sell them to the public at a profit. The business has the following trial balance as at November 30, 2022 (also available in Excel template): Name of Your Business Adjusted Trial Balance November 30, 2022 4,545 1,575 2,700 265 7,350 1,825 125 875 110 130 135 140 160 161 210 230 240 245 260 310 320 410 505 508 515 527 540 550 563 570 Cash Accounts receivable Merchandise inventory Supplies Equipment Accumulated depreciation Accounts payable Unearned revenue Wages payable Interest payable Notes payable capital , drawings Sales revenue Cost of goods sold Advertising expense Depreciation expense Interest expense Repairs expense Supplies expense Telephone expense Wages expense 20 6,000 10,250 4,895 13,850 7,450 780 1,675 290 95 315 335 675 32,945 Totals 32,945 Notes: The $2,700 merchandise inventory balance is comprised of 4 juicing machines that cost $675 each. The notes payable is to the bank and interest is paid on the 1st day of each month (ie. expensed and accrued at the end of each month, then paid the following day). You paid off the loan to your mother early in 2022. (continued on next page) The following transactions happen during the month of December, 2022: Dec 1 You paid the November interest owing on the bank loan. You issued cheque #317. 2 You collected $765 cash from a customer, on account, to whom you had previously sold a juicing machine. 9 You paid the November 30 balance of accounts payable. You issued cheque #318. 11 You purchased, on account, 3 more juicing machines for $685 each (excluding freight). The purchase invoice also included a $45 freight charge for the cost of transporting the machines from the vendor to your place. (Hint - you paid both the cost of the machines and the cost of the freight to the supplier. The cost per unit for these items will be the total invoice amount divided by the number of units). NOTE: You should update the Inventory Worksheet for each purchase and sale transaction (using FIFO). 12 You buy $195 of supplies such as protein powder, cups, straws, and fresh fruit and vegetables, on account. (These are not 'inventory' items). 14 You sold, on account, 2 juicing machines to Bill's Fitness for $940 each. You will use the FIFO method of recording inventory transactions. 21 You make and deliver a batch of juice drinks to Fred's Yoga Studio and you issue a sales invoice of $415. The invoice is payable in 30 days. 23 You paid the amount owing on the December 11 purchase. You issued cheque #319. 27 You purchased, on account, 2 more juicing machines for $695 each (excluding freight). The purchase invoice also included a $30 freight charge for the cost of transporting the machines from the vendor to your place. (see Hint in Dec. 11 transaction) 28 You paid $105 cash for repairs done to some equipment. You issued cheque #320. 29 You sold, on account, 3 juicing machines to the owners of City Contemporary Dance Studio. The selling price of each machine was $940. 30 You received a $115 e-bill for your business cell phone service for December and you paid it immediately. You issued cheque #321. 31 You collected the full amount from the customer who purchased juicing machines on on Dec. 14. 31 You paid a casual worker $85 cash for wages for work done in December. You issued cheque #322. (continued on next page) This section of the project is a continuation from Part 5. Use the information from the previous section and follow the instructions below using the Excel work you have already completed in Part 5 only. Important - Be sure that you use the solution from Part 5 to correct ALL your work (particularly the General Ledger accounts ending balances), if necessary. The solution for Part 5 is in the Term Project folder in Moodle. Your starting point must be correct to ensure you get to the proper solutions for Part 6. This is the final part of the project. In this part, you will complete the year-end adjusting journal entries, the bank reconciliation, finalize the general ledger and the trial balance and prepare the year-end financial statements. The following information is provided regarding the year-end adjusting entries and the bank reconciliation. Adjusting journal entries at December 31, 2022: 1. Depreciation expense on the equipment for December has been correctly calculated to be $145. 2. Based on a year-end count, there was $155 worth of office supplies remaining on December 31 3. 31 days of interest expense has accrued on the note payable and must be recorded. The annual interest rate is 6%. Round the interest amount to the nearest full dollar. 4. All of the unearned revenue previously recorded has now been fully earned. 5. The casual employee worked two days prior to year-end (December 30 and 31) and will be paid $105 on January 5. 6. Your final adjusting journal entry will be to record the reconciling items from the December 31bank reconciliation. Before recording this adjusting journal entry, you need to complete the bank reconciliation using the information below. Information Required for the December 31, 2022 Bank Reconciliation: Cash balance per Bank Statement as of December 31, 2022 $ 2,875 Cash balance per General Ledger (before bank reconciliation adjustments) $ 4,640 Reconciling Items: Deposit in transit $ 1,880.00 Outstanding cheque #322 $ 85.00 Outstanding cheque #320 $ 105.00 Monthly bank service charge $ 10.00 Bank service charge (cheque printing) $ 65.00 Instructions - Using the same Excel file you used in Part 5 (corrected, if necessary): a. Record the adjusting journal entries for December. Continue using the same General Journal from Part 5. b. Prepare the December 31* Bank Reconciliation. C. Record the final adjusting journal entries resulting from the bank reconciliation from part b. d. Post all adjusting journal entries to the General Ledger. Continue using the same General Ledger from Part 5. e. Prepare the Adjusted Trial Balance as of December 31, 2022. f. Prepare the financial statements for the year ending December 31, 2022: Income Statement Statement of Owner's Equity Balance Sheet Assume owner investment in 2022 is $7,316. g. Provide a brief, one paragraph analysis of the financial performance of your business. As part of your analysis, compare the financial statements from December 31, 2021 to the financial statements for the year ending December 31, 2022. Note - You will need to add worksheets to your Excel file in order to do: Part b) - Bank Reconciliation, Parte) - Adjusted Trial Balance Part f) - Income Statement, Statement of Owner's Equity, Balance Sheet These reports must be presented in good form with proper titles, date referencing and formatting. Review the text if necessary to see examples of proper formatting for these statements. The Income Statement and the Balance Sheet can be completed using the simplified format (ie. you are NOT REQUIRED to do a Classified Balance Sheet or a Multiple Step Income Statement). For Part g) - one paragraph analysis of the financial performance of your business, add an additional Excel worksheet at the end of your file labeled 'Part F'. PR Credit Date Accounts/Explanation Dec, 1 Interest Payable Cash Debit $ 20 $ 20 $ 765 Dec, 2 Cash Accounts Recievable $ 765 Dec, 9 Accounts Payable Cash $ 125 $ 125 $ 2,100 Dec, 11 Merchandise Inventory Accounts Payable $ 2,100 $ 195 Dec, 12 Supplies Accounts Payable $ 195 $ 1,880 Dec, 14 Accounts Recievable Sales Revenue $ 1,880 $ 1,350 Dec, 14 Cost of Goods Sold Merchandise Inventory $ 1,350 $ 415 Dec, 21 Accounts Recievables Sales Revenue $ 415 Dec, 23 Accounts Payable Cash $2,100 $2,100 Dec, 27 Merchandise Inventory Accounts Payable $1,420 $1,420 $ 105 Dec, 28 Repair Expenses Cash $ 105 $2,820 Dec, 29 Accounts Recievable Sales Revenue $2,820 $ 2,050 Dec, 29 Cost od Goods Sold Merchandise Inventory $2,050 $ 115 Dec, 30 Telephone Expense Cash $ 115 $1,880 Dec, 31 Cash Accounts Recievable $1,880 Dec, 31 Wages Expense Cash $ 85 $ 85 $ 20 Dec, 31 Interest Expense Interest Payable $ 20