Part 2 - SOLUTION Page 1 Credit a. Journal entries: Date Accounts Dec. 1 Equipment L. Hetherington, Capital PR 110 310 Debit 1,450 1,450 7 1,800 Cash L. Hetherington Capital 110 310 1,800 9 2,500 Cash Note Payable 110 260 2,500 12 250 Advertising Expense Cash 508 110 250 17 350 Supplies Cash 140 110 350 21 425 Accounts Receivable (Fred's Yoga) Sales Revenue 130 410 425 28 135 Telephone Expense Accounts Payable 563 210 135 29 Cash Unearned Revenue 225 110 230 225 30 L. Hetherington, Drawings Cash 175 320 110 175 b. General Ledger: Cash Date Dec 7 9 12 17 29 30 G1 Acc #110 Debit Credit 1.800 2,500 250 350 225 175 Balance 1,800 4,300 4050 3.700 3.925 3.750 Accounts Receivable Acct #130 Credit PR G1 Date Dec 21 Debit 425 Balance 425 Supplies Acct #140 Credit Date Dec 17 PR G1 Debit 350 Balance 350 Equipment PR G1 Acct #160 Debit Credit 1.450 Date Dec 1 Balance 1.450 Accumulated Depreciation Equipment Date Acct #161 Credit PR Debit Balance Accounts Payable Debit Date Dec 28 PR G1 Acct #210 Credit 135 Balance 135 Unearned Revenue PR Debit Date Dec 29 Acct #230 Credit 225 Balance 225 G1 Wages Payable Acct #240 Credit Date PR Debit Balance 2 Acct #245 Credit Balance Interest Payable PR Debit Date Notes Payable Debit PR G1 Acct #1260 Credit 2,500 Balance 2,500 Date Dec 9 Capital Debit Acct 310 Credit 1,450 1,800 PR G1 G1 Balance 1,450 3,250 Date Dec 1 7 Drawings Acct #320 Credit Debit PR G1 Balance 175 Date 175 Dec 30 Sales Revenue Debit PR G1 Acct #410 Credit 425 Balance 425 Date Dec 21 Advertising Expense Acct #508 Credit PR G1 Debit 250 Balance 250 Date Dec 12 Depreciation Expense Acct #515 Credit PR Debit Balance Date Interest & Bank Charges Expense PR Acct #527 Credit Date Debit Balance Supplies Expense Acct #550 Credit Date PR Debit Balance Telephone Expense Acct #563 Credit PR G1 Date Dec 28 Debit 135 Balance 135 Wages Expense Acct 8570 Credit PR Debit Date Balance Hetherington's Juice Bar Trial Balance December 31, 2021 Credit Acc# 110 130 Debit 3,750 425 350 1.450 140 160 161 210 230 260 310 320 410 508 563 Account Cash Accounts receivable Supplies Equipment Accum. depreciation Accounts payable Unearned revenue Notes payable L. Hetherington, Capital L. Hetherington, Drawings Sales revenue Advertising expense Telephone expense Totals 135 225 2,500 3.250 175 425 250 135 $ 6,535 $ 6,535 04 Term Project - Winter 2021 Part 3 This section of the project is a continuation from Parts 1 and 2 Important. Be sure that you use the solution from Part 2 to correct your General Ledger accounts, if necessary. The solution for Part 2 is in the Term Project folder in Moodle. Your starting point must be correct to ensure you get to the correct journal entries and ending General Ledger account balances for Part 3 It is now the end of December. Your mother is curious to know if the business has been profitable and if you will need another loan to help finance the business. You would also like to know if the business has been profitable after the first month of operation. In order to do so, you must first make several adjusting journal entries and have compiled the following additional information: ADJE 1 The supplies on hand on December 31 were counted and costed out. There is $75 worth of office supplies remaining 2 On December 31, you delivered Juice Drinks to John's Gym and, although you also delivered the invoice, you had forgotten to record it. The invoice was for $215 and is due in 30 days 3 Because the above order for lohn's Gym was last-minute, you hired your friend to work for four hours on December 31 to help make the juice drinks. You will pay her cash on January 3 at the rate of $18 per hour. 4 Depreciation on the juicing machine must be recorded. The useful life of the machine is three years. (Round depreciation amount to the nearest dollar) 5 The interest on the loan from your mom will be paid in full at the end of the loan term. Assume that 22 days interest has accrued on the loan to December 31 and the annual interest rate for the loan is ex To be done from solutions on poses 1-4 Instructions - Using the same-Excel file you started using in Part 2 corrected, if necessary. a. Record the adjusting Journal entries using the information above to the General Journal. Round all amounts to the nearest dollar b. Post the adjusting journal entries from the General Journal to the General Ledger accounts. c. Prepare an Adjusted Trial Balance as at December 31, 2021. d. Using the Adjusted Trial Balance, prepare the following financial statements, in proper form for the first month of operations: 1. Income Statement il. Statement of Owner's Equity Balance Sheet Note - You will need to add worksheets to your Excel file in order to do parts c) and d) above. The Adjusted Trial Balance and the three financial statements MUST be in proper form AND have proper date referencing. Review the text if necessary to see examples of proper formatting for these statements S