Part 6 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 31st . 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 31st bank 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 BuAD 111 Financial Accounting I Term Project - Winter 2021 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 31st 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 Owners 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, Part e) - Adjusted Trial Balance Part f) - Income Statement, Statement of Owners 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.

Date Nov 30 Unearned Revenue PR Bal, forward Debit Acct #230 Credit Balance 875 Date No 30 Wages Payable PR Bal, forward Debit Acct #240 Credit Balance Interest Payable PR Bal, forward G14 Date Nov 30 Dec. 1 Debit Acct #245 Credit Balance 20 20 Date Nov 30 Notes Payable PR Bal, forward Debit Acct #260 Credit Balance 6,000 Date Nov 30 Owner, Capital PR Bal, forward Debit Acct #310 Credit Balance 10,250 Date Nov 30 Owner, Drawings PR Bal, forwar Debit Acct #320 Credit Balance 4,895 Debit Acct #410 Credit Balance Date Nov 30 Dec. 14 21 Sales Revenue PR Bal, forwar G14 1G14 1,880 415 13,850 15.730 16.145 O A Debit Date Nov 30 Dec. 14 21 Sales Revenue PR Bal, forward G14 G14 G15 Acct #410 Credit Balance 13,850 1,880 15,730 415 16,145 18,965 2,820 Date Nov 30 Dec. 14 29 Cost of Goods Sold Acct #506 PR Debit Credit Balance Bal, forwar 7.450 G14 1,350 8,800 G15 2,050 10,850 Date Nov 30 Advertising Expense PR Debit Bal, forwar Acct #508 Credit Balance 780 Date Nov 30 Depreciation Expense Debit Bal, forward Acct #515 Credit Balance 1,675 Interest and Bank Charges Expense Date PR Debit Nov 30 Bal, forwar Acct #527 Credit Balance 290 Dject - Winter 2021.xlsx General Ledger: Cash PR Bal, forwar Chg #317 Date Nov 30 Dec. 1 2 9 23 28 30 31 31 Chq #318 Cha #319 Chg 1320 Cha #321 G14 G14 G14 G14 G15 G15 G15 G15 Acct 10 Debit Credit Balance 4,545 20.00 4,525.00 765.00 5.290.00 125.00 5,165.00 2,100.00 3,065.00 105.00 2,960.00 115.00 2,845.00 1,880.00 4,725.00 85.00 4,640.00 Chg #322 Acct #130 Credit Balance Date Nov 30 Dec. 2 14 21 29 31 Accounts Receivable PR Debit Bal. forward G14 G14 1,880 G14 415 G15 2,820 G15 765 1,575 810 2,690 3,105 5,925 4.045 1,880 Debit Date Nov 30 Dec. 11 14 27 29 Inventory PR Bal, forward G14 G14 G15 G15 2.100 Acct #135 Credit Balance 2,700 4.800 1.350 3,450 4,870 2.050 2,820 1,420 Check Date Nov 30 Dec. 12 Supplies PR Bal, forward G14 Acct #140 Debit Credit Balance 265 195 460 Equipment Acct #160 W21%20-%20Part%205%20SOLUT - 2021.xlsx 3 5 100%. 27 29 G15 G15 1,420 2,050 4,870 2820 check Date Nov 30 Dec, 12 Supplies PR Bal. forward G14 Acct #140 Debit Credit Balance 265 195 460 Date Nov 30 Equipment PR Bal, forward Debit Acct #160 Credit Balance 7,350 Accumulated Depreciation-Equipment Acct #161 Date PR Debit Credit Balance Nov 30 Bal, forwar 1,825 Accounts Payable PR Bal. forward Debit Acct #210 Credit Balance 125 G14 125 Date Nov 30 Dec. 9 11 12 23 27 G 14 G14 G14 G15 2,100 195 2.100 2.100 2.295 195 1,615 1,420 100% Journal Entries Date Dec. 1 Debit 20 Credit Accounts/Explanation Interest Payable Cash Paid November bank loan interest Chq #317 PR 245 110 20 765 Cash Accounts Receivable Collected cash on account 110 130 765 9 125 Accounts Payable Cash Paid Nov. 30 AP balance, chq #318 210 110 125 135 210 2,100 2,100 11 Inventory Accounts Payable Purchased 3 juicing machines, cost per machine, including freight is 700. 195 12 Supplies Accts. Payable Purchased supplies on account. 140 210 195 1,880 1,880 14 Accls. Receivable Sales Revenue Cost of Goods Sold Inventory Sold 2 juicing machines on account 130 410 505 135 1,350 1.350 415 21 Accls Receivable Sales Revenue 130 410 415 Part & Inventory (Solrtion) Inventory Subledger - Juicers-FIFQ Date Nov 30 Purchases (+ open balance) Units Cost Total 4 675 2,700 Sales (cost of sales) Units Cost Total Units 4 Balance Cost 676 Total 2,700 Dec 11 700 2,100 675 700 Dec 14 4 3 7 2 3 2 676 1,350 675 700 Dec 27 2. 710 2,700 2 100 4,800 1,350 2,100 3,450 1,350 2.100 1,420 4,870 1,400 1,420 675 700 5 2 3 2 7 2 2 4 710 Dec 29 2 1 3 675 700 1,350 700 2,050 700 710 1.420 2,820 Totals 9 6,220 5 3,400 4 2,820 Journal Entries Date Dec. 1 Credit Accounts/Explanation Interest Payable Cash Paid November bank loan interest Chq #317 PR 245 110 Debit 20 20 Sold Juice drinks on account 2,100 210 110 23 Accts. Payable Cash Paid amount owing re Dec 11 purchase. Chq #319. 2100 1,420 135 210 1,420 27 Inventory Accts. Payable Purchased 2 juicing machines on acct. 105 28 Repairs Expense Cash Paid for repairs, chq #320. 540 110 105 2,820 2.820 29 Accts. Receivable Sales Revenue Cost of Goods Sold Inventory Sold 3 juicing machines on account. 130 410 505 135 2,050 2.050 115 563 110 115 30 Telephone Expense Cash Paid December telephone bill Chq #321 1.880 110 130 1.880 31 Cash Accts. Receivable Collected from customer re Dec. 14 sale 85 31 Wages Expense Cash Paid casual worker Chg #322 570 110 85 Date Nov 30 Unearned Revenue PR Bal, forward Debit Acct #230 Credit Balance 875 Date No 30 Wages Payable PR Bal, forward Debit Acct #240 Credit Balance Interest Payable PR Bal, forward G14 Date Nov 30 Dec. 1 Debit Acct #245 Credit Balance 20 20 Date Nov 30 Notes Payable PR Bal, forward Debit Acct #260 Credit Balance 6,000 Date Nov 30 Owner, Capital PR Bal, forward Debit Acct #310 Credit Balance 10,250 Date Nov 30 Owner, Drawings PR Bal, forwar Debit Acct #320 Credit Balance 4,895 Debit Acct #410 Credit Balance Date Nov 30 Dec. 14 21 Sales Revenue PR Bal, forwar G14 1G14 1,880 415 13,850 15.730 16.145 O A Debit Date Nov 30 Dec. 14 21 Sales Revenue PR Bal, forward G14 G14 G15 Acct #410 Credit Balance 13,850 1,880 15,730 415 16,145 18,965 2,820 Date Nov 30 Dec. 14 29 Cost of Goods Sold Acct #506 PR Debit Credit Balance Bal, forwar 7.450 G14 1,350 8,800 G15 2,050 10,850 Date Nov 30 Advertising Expense PR Debit Bal, forwar Acct #508 Credit Balance 780 Date Nov 30 Depreciation Expense Debit Bal, forward Acct #515 Credit Balance 1,675 Interest and Bank Charges Expense Date PR Debit Nov 30 Bal, forwar Acct #527 Credit Balance 290 Dject - Winter 2021.xlsx General Ledger: Cash PR Bal, forwar Chg #317 Date Nov 30 Dec. 1 2 9 23 28 30 31 31 Chq #318 Cha #319 Chg 1320 Cha #321 G14 G14 G14 G14 G15 G15 G15 G15 Acct 10 Debit Credit Balance 4,545 20.00 4,525.00 765.00 5.290.00 125.00 5,165.00 2,100.00 3,065.00 105.00 2,960.00 115.00 2,845.00 1,880.00 4,725.00 85.00 4,640.00 Chg #322 Acct #130 Credit Balance Date Nov 30 Dec. 2 14 21 29 31 Accounts Receivable PR Debit Bal. forward G14 G14 1,880 G14 415 G15 2,820 G15 765 1,575 810 2,690 3,105 5,925 4.045 1,880 Debit Date Nov 30 Dec. 11 14 27 29 Inventory PR Bal, forward G14 G14 G15 G15 2.100 Acct #135 Credit Balance 2,700 4.800 1.350 3,450 4,870 2.050 2,820 1,420 Check Date Nov 30 Dec. 12 Supplies PR Bal, forward G14 Acct #140 Debit Credit Balance 265 195 460 Equipment Acct #160 W21%20-%20Part%205%20SOLUT - 2021.xlsx 3 5 100%. 27 29 G15 G15 1,420 2,050 4,870 2820 check Date Nov 30 Dec, 12 Supplies PR Bal. forward G14 Acct #140 Debit Credit Balance 265 195 460 Date Nov 30 Equipment PR Bal, forward Debit Acct #160 Credit Balance 7,350 Accumulated Depreciation-Equipment Acct #161 Date PR Debit Credit Balance Nov 30 Bal, forwar 1,825 Accounts Payable PR Bal. forward Debit Acct #210 Credit Balance 125 G14 125 Date Nov 30 Dec. 9 11 12 23 27 G 14 G14 G14 G15 2,100 195 2.100 2.100 2.295 195 1,615 1,420 100% Journal Entries Date Dec. 1 Debit 20 Credit Accounts/Explanation Interest Payable Cash Paid November bank loan interest Chq #317 PR 245 110 20 765 Cash Accounts Receivable Collected cash on account 110 130 765 9 125 Accounts Payable Cash Paid Nov. 30 AP balance, chq #318 210 110 125 135 210 2,100 2,100 11 Inventory Accounts Payable Purchased 3 juicing machines, cost per machine, including freight is 700. 195 12 Supplies Accts. Payable Purchased supplies on account. 140 210 195 1,880 1,880 14 Accls. Receivable Sales Revenue Cost of Goods Sold Inventory Sold 2 juicing machines on account 130 410 505 135 1,350 1.350 415 21 Accls Receivable Sales Revenue 130 410 415 Part & Inventory (Solrtion) Inventory Subledger - Juicers-FIFQ Date Nov 30 Purchases (+ open balance) Units Cost Total 4 675 2,700 Sales (cost of sales) Units Cost Total Units 4 Balance Cost 676 Total 2,700 Dec 11 700 2,100 675 700 Dec 14 4 3 7 2 3 2 676 1,350 675 700 Dec 27 2. 710 2,700 2 100 4,800 1,350 2,100 3,450 1,350 2.100 1,420 4,870 1,400 1,420 675 700 5 2 3 2 7 2 2 4 710 Dec 29 2 1 3 675 700 1,350 700 2,050 700 710 1.420 2,820 Totals 9 6,220 5 3,400 4 2,820 Journal Entries Date Dec. 1 Credit Accounts/Explanation Interest Payable Cash Paid November bank loan interest Chq #317 PR 245 110 Debit 20 20 Sold Juice drinks on account 2,100 210 110 23 Accts. Payable Cash Paid amount owing re Dec 11 purchase. Chq #319. 2100 1,420 135 210 1,420 27 Inventory Accts. Payable Purchased 2 juicing machines on acct. 105 28 Repairs Expense Cash Paid for repairs, chq #320. 540 110 105 2,820 2.820 29 Accts. Receivable Sales Revenue Cost of Goods Sold Inventory Sold 3 juicing machines on account. 130 410 505 135 2,050 2.050 115 563 110 115 30 Telephone Expense Cash Paid December telephone bill Chq #321 1.880 110 130 1.880 31 Cash Accts. Receivable Collected from customer re Dec. 14 sale 85 31 Wages Expense Cash Paid casual worker Chg #322 570 110 85