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.

Part 5 Inventory (Solution): Sold juice drinks, on account 210 110 2.100 Inventory Subledger - Juicers-FIFO 2.100 23 Accts. Payable Cash Paid amount owing re Dec 11 purchase. Chg #319. Purchases (+ open balance) Units Total 4 675 2.700 Cost Sales (cost of sales) Units Cost Total Date Nov 30 Units 4 Balance Cost 675 Total 2,700 1,420 135 210 1,420 27 Inventory Accts. Payable Purchased 2 juicing machines on acct. Dec 11 3 700 2,100 675 700 Dec 14 2 675 1,350 105 675 700 28 Repairs Expense Cash Paid for repairs, chq #320. 540 110 105 Dec 27 2 710 1,420 4 3 7 21 31 5 2 31 2 7 2 2 4 2.700 2,100 4,800 1.350 2.100 3,450 1,350 2,100 1.420 4,870 1,400 1,420 2,820 675 700 710 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 Dec 29 2 1 3 675 700 1,350 700 2,050 700 710 115 563 110 115 Totals 9 6,220 5 3,400 4 2,820 30 Telephone Expense Cash Paid December telephone bill Chg #321. Journal Entries 1,880 110 130 1,880 Credit Date Dec. 1 31 Cash Accts. Receivable Collected from customer re Dec. 14 sale PR 245 110 Debit 20 Accounts/Explanation Interest Payable Cash Paid November bank loan interest Ch 317 20 85 31 Wages Expense Cash Paid casual worker. Chq #322 570 110 85 765 2 Cash Accounts Receivable Collected cash on account 110 130 765 125 9 9 Accounts Payable Cash Paid Nov. 30 AP balance, chq #318 210 110 125 2,100 135 210 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 14 Accts Receivable Sales Revenue Cost of Goods Sold Inventory Sold 2 juicing machines on account 130 410 505 135 1,880 1,350 1.350 415 21 Accts Receivable Sales Revenue 130 410 415 General Ledger Unearned Revenue PR Bal forwar Date Nov 30 Debit Acct #230 Credit Balance 875 Acct #240 Credit Balance Debit Cash PR Bal, forward Chg #317 G14 G14 Chq #318 G14 Cha #319 G14 Cha #320 G15 Chg #321 G15 G15 Chg #322 G15 Date Nov 30 Dec. 1 2 9 23 28 30 31 31 Acct #110 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 Wages Payable PR Bal. forward Date Nov 30 Debit Date Nov 30 Dec. 1 Interest Payable PR TBal forward G14 Acct #245 Credit Balance 20 20 Notes Payable PR Bal. forward Date Nov 30 Debit Acct #260 Credit Balance 6.000 Date Nov 30 Dec. 2 14 21 29 31 Accounts Receivable Acct #130 PR Debit Credit Balance Bal. forward 1,575 G14 765 810 G14 1.880 2,690 G14 415 3,105 G15 2.820 5,925 G15 1,880 4,045 Owner, Capital PR Bal. forward Date Nov 30 Debit Acct #310 Credit Balance 10.250 Date Nov 30 Dec. 11 14 27 29 Inventory PR Bal. forward G14 G14 G15 G15 Acct #135 Debit Credit Balance 2,700 2,100 4.800 1,350 3.450 1,420 4,870 2,050 2.820 Date 1991 Owner, Drawings PR Bal. forward Debit Acct #320 Credit Balance 4,895 Nov 30 check Debit Sales Revenue Date Nov 30 Dec. 12 Supplies PR Bal. forwar G14 Acct #140 Credit Balance 265 460 PR Debit 195 Date Nov 30 Dec. 14 21 29 Bal. forward G14 G14 G15 Acct #410 Credit Balance 13,850 1.880 15,730 415 16.145 2.820 18,965 Equipment PR Bal. forwar Date Nov 30 Debit Acct #160 Credit Balance 7,350 Accumulated Depreciation-Equipment Acct #161 Date PR Debit Credit Balance Nov 30 Bal, forwar 1,825 Date Nov 30 Dec. 14 29 Cost of Goods Sold PR Bal forward 1G14 G15 Acct #505 Debit Credit Balance 7.450 1,350 8.800 2.050 10,850 Accounts Payable Debit Advertising Expense PR Bal, forward Date Nov 30 Acct #508 Credit Acct #210 Credit Balance 125 Balance 780 PR Debit 125 Date Nov 30 Dec. 9 11 12 23 27 Bal. forward G14 1G14 G14 G14 G15 2.100 195 2,100 2.295 195 1,615 2.100 Depreciation Expense PR Debit Bal forward Date Nov 30 Acct #515 Credit Balance 1,675 1,420 Interest and Bank Charges Expense Date PR Debit Nov 30 Bal forward Acct 527 Credit Balance 290 Debit Date Nov 30 Dec. 28 Repairs Expense PR Bal, forwar G15 Acct #540 Credit Balance 95 200 105 Supplies Expense PR Bal, forwar Date Nov 30 Debit Acct #550 Credit Balance 315 Debit Date Nov 30 Dec. 30 Telephone Expense PR Bal, forward G15 Acct #563 Credit Balance 335 450 115 Wages Expense PR Bal, forwar G15 Date Nov 30 Dec. 31 Debit Acct #570 Credit Balance 675 85 760 Unadjusted Trial Balance December 31, 2022 Credit Debit 4,640 4,045 2.820 460 7,350 1,825 1,615 875 110 130 135 140 160 161 210 230 240 245 260 310 320 410 505 508 515 527 540 550 563 570 Cash Accounts receivable Inventory Supplies Equipment Accumulated depreciation Accounts payable Unearned revenue Wages payable Interest payable Notes payable Owner, capital Owner, drawings Sales revenue Cost of goods sold Advertising expense Depreciation expense Interest & bank charges Repairs expense Supplies expense Telephone expense Wages expense Totals 6,000 10.250 4,895 18.965 10,850 780 1,675 290 200 315 450 760 39,530 39,530 Part 5 Inventory (Solution): Sold juice drinks, on account 210 110 2.100 Inventory Subledger - Juicers-FIFO 2.100 23 Accts. Payable Cash Paid amount owing re Dec 11 purchase. Chg #319. Purchases (+ open balance) Units Total 4 675 2.700 Cost Sales (cost of sales) Units Cost Total Date Nov 30 Units 4 Balance Cost 675 Total 2,700 1,420 135 210 1,420 27 Inventory Accts. Payable Purchased 2 juicing machines on acct. Dec 11 3 700 2,100 675 700 Dec 14 2 675 1,350 105 675 700 28 Repairs Expense Cash Paid for repairs, chq #320. 540 110 105 Dec 27 2 710 1,420 4 3 7 21 31 5 2 31 2 7 2 2 4 2.700 2,100 4,800 1.350 2.100 3,450 1,350 2,100 1.420 4,870 1,400 1,420 2,820 675 700 710 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 Dec 29 2 1 3 675 700 1,350 700 2,050 700 710 115 563 110 115 Totals 9 6,220 5 3,400 4 2,820 30 Telephone Expense Cash Paid December telephone bill Chg #321. Journal Entries 1,880 110 130 1,880 Credit Date Dec. 1 31 Cash Accts. Receivable Collected from customer re Dec. 14 sale PR 245 110 Debit 20 Accounts/Explanation Interest Payable Cash Paid November bank loan interest Ch 317 20 85 31 Wages Expense Cash Paid casual worker. Chq #322 570 110 85 765 2 Cash Accounts Receivable Collected cash on account 110 130 765 125 9 9 Accounts Payable Cash Paid Nov. 30 AP balance, chq #318 210 110 125 2,100 135 210 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 14 Accts Receivable Sales Revenue Cost of Goods Sold Inventory Sold 2 juicing machines on account 130 410 505 135 1,880 1,350 1.350 415 21 Accts Receivable Sales Revenue 130 410 415 General Ledger Unearned Revenue PR Bal forwar Date Nov 30 Debit Acct #230 Credit Balance 875 Acct #240 Credit Balance Debit Cash PR Bal, forward Chg #317 G14 G14 Chq #318 G14 Cha #319 G14 Cha #320 G15 Chg #321 G15 G15 Chg #322 G15 Date Nov 30 Dec. 1 2 9 23 28 30 31 31 Acct #110 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 Wages Payable PR Bal. forward Date Nov 30 Debit Date Nov 30 Dec. 1 Interest Payable PR TBal forward G14 Acct #245 Credit Balance 20 20 Notes Payable PR Bal. forward Date Nov 30 Debit Acct #260 Credit Balance 6.000 Date Nov 30 Dec. 2 14 21 29 31 Accounts Receivable Acct #130 PR Debit Credit Balance Bal. forward 1,575 G14 765 810 G14 1.880 2,690 G14 415 3,105 G15 2.820 5,925 G15 1,880 4,045 Owner, Capital PR Bal. forward Date Nov 30 Debit Acct #310 Credit Balance 10.250 Date Nov 30 Dec. 11 14 27 29 Inventory PR Bal. forward G14 G14 G15 G15 Acct #135 Debit Credit Balance 2,700 2,100 4.800 1,350 3.450 1,420 4,870 2,050 2.820 Date 1991 Owner, Drawings PR Bal. forward Debit Acct #320 Credit Balance 4,895 Nov 30 check Debit Sales Revenue Date Nov 30 Dec. 12 Supplies PR Bal. forwar G14 Acct #140 Credit Balance 265 460 PR Debit 195 Date Nov 30 Dec. 14 21 29 Bal. forward G14 G14 G15 Acct #410 Credit Balance 13,850 1.880 15,730 415 16.145 2.820 18,965 Equipment PR Bal. forwar Date Nov 30 Debit Acct #160 Credit Balance 7,350 Accumulated Depreciation-Equipment Acct #161 Date PR Debit Credit Balance Nov 30 Bal, forwar 1,825 Date Nov 30 Dec. 14 29 Cost of Goods Sold PR Bal forward 1G14 G15 Acct #505 Debit Credit Balance 7.450 1,350 8.800 2.050 10,850 Accounts Payable Debit Advertising Expense PR Bal, forward Date Nov 30 Acct #508 Credit Acct #210 Credit Balance 125 Balance 780 PR Debit 125 Date Nov 30 Dec. 9 11 12 23 27 Bal. forward G14 1G14 G14 G14 G15 2.100 195 2,100 2.295 195 1,615 2.100 Depreciation Expense PR Debit Bal forward Date Nov 30 Acct #515 Credit Balance 1,675 1,420 Interest and Bank Charges Expense Date PR Debit Nov 30 Bal forward Acct 527 Credit Balance 290 Debit Date Nov 30 Dec. 28 Repairs Expense PR Bal, forwar G15 Acct #540 Credit Balance 95 200 105 Supplies Expense PR Bal, forwar Date Nov 30 Debit Acct #550 Credit Balance 315 Debit Date Nov 30 Dec. 30 Telephone Expense PR Bal, forward G15 Acct #563 Credit Balance 335 450 115 Wages Expense PR Bal, forwar G15 Date Nov 30 Dec. 31 Debit Acct #570 Credit Balance 675 85 760 Unadjusted Trial Balance December 31, 2022 Credit Debit 4,640 4,045 2.820 460 7,350 1,825 1,615 875 110 130 135 140 160 161 210 230 240 245 260 310 320 410 505 508 515 527 540 550 563 570 Cash Accounts receivable Inventory Supplies Equipment Accumulated depreciation Accounts payable Unearned revenue Wages payable Interest payable Notes payable Owner, capital Owner, drawings Sales revenue Cost of goods sold Advertising expense Depreciation expense Interest & bank charges Repairs expense Supplies expense Telephone expense Wages expense Totals 6,000 10.250 4,895 18.965 10,850 780 1,675 290 200 315 450 760 39,530 39,530