On January 2, 2024, you receive the following email from your supervisor:

Hi [Student Name],

Based on discussions I had with Rose, the following information is available to you. Please record the adjusting journal entries using this information.

(1) December 31: As at December 31, the following students had received lessons that they have not yet paid for:

Student

Mr. Johnson Mr. Saunders Ms. McVey

Amount owing $ 60.00

30.00 60.00

(2) Rose has indicated the she had office supplies costing $124.00 on hand at December 31 base on her count of the supplies.

(3) [Make the adjusting entry for prepaid rent.]

(4) The 2023 depreciation expense on property, plant, and equipment has been correctly calculated (by your supervisor) at the following amounts

Computer equipment $ 600 Pianos 328

(5) All of the unearned lesson revenue has been earned by December 31.

(6) [Accrue $200 for bookkeeping/accounting fees for December.]

(7) [Accrue interest expense on the bank loan for December. The calculation is:

Dec. 1 loan balance X 9.0% /12

NOTE: Dec. 1 loan balance is AFTER the December 1 loan payment

(8) Once you have journalized the above adjusting entries, you must prepare the December 31 bank reconciliation. You will need the 2 files that are

attached to this email (attachments are below]

Sincerely, [Professor Name]

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

Attachment #1

The completed November 30 bank reconciliation

Rose Temple Piano Teacher Bank Reconciliation November 30, 2023

Balance per bank statement...................... Less: Outstanding cheques:

Repairs Exp. #215..........

Advertising Exp #216.......... Balance per general ledger Cash acct.....

Attachment #2

$ 59.61 108.25

$

$

13,266.58

167.86 13,098.72

The Bank Statement for December, 2023 CIBC

Statement of Current Account for Rose Temple Piano Teacher For Month of December 2023

Date

Item

Debit

Credit

Balance

Nov30 Dec1 Dec5 Dec6 Dec6 Dec13 Dec20 Dec27 Dec31

Balance Auto Dep

Ch 217 Dep

Ch 215 WD

Ch 219 SC

233.00 4,200.00

57.61 3,000.00 279.50 14.50

92.00 5,250.00

13,266.58 13,033.58 13,125.58

8,925.58 14,175.58 14,117.97 11,117.97 10,838.47 10,823.97

Part 5 instructions continued:

(9) Next, record the last adjusting entry, resulting from your bank reconciliation.

(10) Finally, post your adjusting entries to the general ledger and prepare the adjusted trial balance at December 31, 2023.