Part PART 1 On the worksheet attached, you will find the unadjusted trial balance of Alder Professional Services for its year ended December 31, 2014 in discussion with the owner, Jim Jennings, you discover that Jim's capital balance at 12/31/2013 was $15,000 In addition, the following information was provided by Jim 1 At December 31, 2013 the inventory of office supplies was $1,000 00 During 2014, the business purchased office supplies costing $4,500.00, and the inventory of office supplies at the end of 2014 was $1,200.00 2. At the end of the year, there were unpaid wages to Jim's assistant who earns $300 per day He was last paid on Friday December 27 for work to the end of the 27" He wanted to spend some more time with his family so is only working Mondays and Tuesdays in December The next pay date will be on Friday January 3, 2015 3 Alder's rent is $1,000 per month Alder paid its January 2015 rent on December 28, 2014 4 The office equipment was purchased on November 1, 2013 at a cost of $15,000 Its estimated salvage value at the end of its estimated 4 year life is $3,000 Depreciation is recorded to the nearest whole month 5 The bank loan is a long-term liability that was used to purchase the office equipment in 2013 The original loan was for $15,000, and a $5,000 loan payment was made on September 30, 2014 The interest rate on the loan is at a rate of 1% per month Interest for July 2014 through June 2015 will be paid on June 30, 2015 6. Interest eamed on the temporary investment for the year ended December 31, 2014 at a rate of 5% per year will be received by Alder on January 10, 2015 The investment started on July 1, 2014 Business insurance costs $100 per month The latest policy was purchased on November 1 for one year in the amount of $1,200.00 7 8 Alder started a large contract in December Jim Jennings asked for a 50% deposit of the total contract price of $15,000 By the end of December, 10% of the total contract had been completed 9 A consulting project was completed on December 30, 2014, but is not yet recorded and the amount has not been received. The invoice for $2,000 will be prepared and the customer has until January 31, 2015 to pay the invoice 10. A $400.00 bill for December 2014 telephone charges arrived in the mail after the trial balance was prepared The bill is unpaid and unrecorded REQUIRED 1. Prepare adjusting journal entries in proper general Journal form for the above on the attached general journal page - 30 marks. 2. Enter the adjusting journal entries to the adjustments column on the attached trial balance - 7 marks 3. Complete the adjusted trial balance columns on the attached trial balance - 7 marks. Part PART 1 On the worksheet attached, you will find the unadjusted trial balance of Alder Professional Services for its year ended December 31, 2014 in discussion with the owner, Jim Jennings, you discover that Jim's capital balance at 12/31/2013 was $15,000 In addition, the following information was provided by Jim 1 At December 31, 2013 the inventory of office supplies was $1,000 00 During 2014, the business purchased office supplies costing $4,500.00, and the inventory of office supplies at the end of 2014 was $1,200.00 2. At the end of the year, there were unpaid wages to Jim's assistant who earns $300 per day He was last paid on Friday December 27 for work to the end of the 27" He wanted to spend some more time with his family so is only working Mondays and Tuesdays in December The next pay date will be on Friday January 3, 2015 3 Alder's rent is $1,000 per month Alder paid its January 2015 rent on December 28, 2014 4 The office equipment was purchased on November 1, 2013 at a cost of $15,000 Its estimated salvage value at the end of its estimated 4 year life is $3,000 Depreciation is recorded to the nearest whole month 5 The bank loan is a long-term liability that was used to purchase the office equipment in 2013 The original loan was for $15,000, and a $5,000 loan payment was made on September 30, 2014 The interest rate on the loan is at a rate of 1% per month Interest for July 2014 through June 2015 will be paid on June 30, 2015 6. Interest eamed on the temporary investment for the year ended December 31, 2014 at a rate of 5% per year will be received by Alder on January 10, 2015 The investment started on July 1, 2014 Business insurance costs $100 per month The latest policy was purchased on November 1 for one year in the amount of $1,200.00 7 8 Alder started a large contract in December Jim Jennings asked for a 50% deposit of the total contract price of $15,000 By the end of December, 10% of the total contract had been completed 9 A consulting project was completed on December 30, 2014, but is not yet recorded and the amount has not been received. The invoice for $2,000 will be prepared and the customer has until January 31, 2015 to pay the invoice 10. A $400.00 bill for December 2014 telephone charges arrived in the mail after the trial balance was prepared The bill is unpaid and unrecorded REQUIRED 1. Prepare adjusting journal entries in proper general Journal form for the above on the attached general journal page - 30 marks. 2. Enter the adjusting journal entries to the adjustments column on the attached trial balance - 7 marks 3. Complete the adjusted trial balance columns on the attached trial balance - 7 marks