Cookie Creations is gearing up for the winter holiday season. During the month o
ID: 2353419 • Letter: C
Question
Cookie Creations is gearing up for the winter holiday season. During the month of December 2011, the following transactions occur.Dec. ?1 Natalie hires an assistant at an hourly wage of $8 to help with cookie making and some administrative duties.
5 Natalie teaches the class that was booked on November 25. The balance outstanding is received.
8 Cookie Creations receives a check for the amount due from the neighborhood school for the class given on November 30.
9 Cookie Creations receives $750 in advance from the local school board for five classes that the company will give during December and January.
15 Pays the cell phone invoice outstanding at November 30.
16 Issues a check to Natalie's brother for the amount owed for the design of the website.
19 Receives a deposit of $60 on a cookie class scheduled for early January.
23 Additional revenue earned during the month for cookie-making classes amounts to $4,000. (Natalie has not had time to account for each class individually.) $3,000 in cash has been collected and $1,000 is still outstanding. (This is in addition to the December 5 and December 9 transactions.)
23 Additional baking supplies purchased during the month for sugar, flour, and chocolate chips amount to $1,250 cash.
23 Issues a check to Natalie's assistant for $800. Her assistant worked approximately 100 hours from the time in which she was hired until December 23.
28 Pays a dividend of $500 to the common shareholder (Natalie).
(a)
Journalize the above transactions.
(b)
Post the December transactions. (Use the general ledger accounts prepared in Chapter 3.)
(c)
Prepare a trial balance at December 31, 2011.
(c) Totals $8,160
Explanation / Answer
i request you to paste every thing in excel for having best view. $50 deposit received for Dec. 5 class Nov. 16 $2,000.00 Accounts Receivable 29 Cash $100.00 Nov. 30 $250.00 Service Revenue $100.00 Bal. $2,000.00 $100 received for Nov. 18 class Bal. $250.00 30 Website $600.00 Baking Supplies Accounts Payable $600.00 Nov. 14 $125.00 Website website built for future advertising Nov. 30 $600.00 30 Prepaid Insurance $1,200.00 Bal. $125.00 Cash $1,200.00 $600.00 Bal. Purchased 1-year Insurance Advertising Supplies 30 Accounts Receivable $250.00 Nov. 11 $95.00 Service Revenue $250.00 Invoice sent for elementary class Bal. $95.00 30 Cell Phone $50.00 Accounts Payable $50.00 Baking Equipment $50 cell phone bill due in Dec. Nov. 15 $300.00 Nov. 17 $900.00 Bal. $1,200.00 GENERAL JOURNAL b) GENERAL LEDGER c) COOKIE CREATIONS INC. d) GENERAL JOURNAL GENERAL LEDGER e) COOKIE CREATIONS INC. f) COOKIE CREATIONS INC. GENERAL JOURNAL Service Revenue COOKIE CREATIONS INC. Date Account Titles and Explanation Debit Credit Cash Trial Balance Date Account Titles and Explanation Debit Credit Service Revenue Advertising Expense Adjusted Trial Balance Income Statement Date Account Titles and Explanation Debit Credit (1) $4,275.00 $4,275.00 Post Closing Trial Balance Dec. 5 Cash $75.00 Dec. 5 $75.00 15 $50.00 December 31, 2006 2007 Adjusting Entries Dec. 31 $375.00 31 adj $50.00 December 31, 2006 For the Year Ending Dec 31, 2006 2007 Closing Entries Bal. $- December 31, 2006 Unearned Revenue $50.00 8 $250.00 16 $600.00 Debit Credit Dec. 31 Advertising Expense $50.00 31 $375.00 Debit Credit (1) Debit Credit Service Revenue $125.00 9 $625.00 23 $1,250.00 Cash $1,630.00 Advertising Supplies $50.00 $50.00 Cash $1,630.00 Revenues Dec. 31 Service Revenue $4,275.00 Income Summary Cash $1,630.00 (Nov. 25 class paid for) 19 $50.00 23 $800.00 Accounts Receivable $500.00 (To record remaining supplies) Bal. $750.00 Accounts Receivable $125.00 Service Revenue $4,275.00 Income Summary $4,275.00 (2) $2,196.00 (1) $4,275.00 Accounts Receivable $125.00 Dec. 8 Cash $250.00 23 $3,500.00 28 $500.00 Prepaid Insurance $1,200.00 Dec. 31 Depreciation Expense - Baking Equipment $40.00 Advertising Supplies Prepaid Insurance $1,100.00 Unearned Revenue $250.00 (To close revenue account) (3) $2,079.00 Advertising Supplies $45.00 Accounts Receivable $250.00 Website $600.00 Accumulated Depreciation - Baking Equipment $40.00 Baking Supplies 31 adj $50.00 Website $575.00 Expenses (2 ) Bal. $- Baking supplies $350.00 (Received payment for Nov. 30 elementary class) $1,300.00 Baking Equipment $1,200.00 (To record monthly depreciation) Dec. 31 $1,025.00 Accumulated Depreciation - Baking Equip $40.00 Ammoritization Expense $25.00 31 Income Summary $2,196.00 Prepaid Insurance $1,100.00 Dec. 9 Cash $625.00 Accounts Payable $0.00 Dec. 31 Ammoritization Expense $25.00 Bal. $50.00 Baking Equipment $1,200.00 Baking Supplies Expense $1,025.00 Advertising Expense $50.00 Retained Earnings Website $575.00 Unearned Revenue $625.00 Service Revenue Notes Payable $2,000.00 Website $25.00 $1,025.00 Accounts Payable $75.00 Advertising Expense $50.00 Ammoritization Expense $25.00 (1) $500.00 $2,079.00 Accumulated Depreciation - Baking Equip $40.00 (Prepaid for services to be provided in Dec and Jan) Dec. 5 $50.00 Common Stock $800.00 (To record ammoritization of website) Depreciation Expense - Baking Equip Notes Payable $2,000.00 Insurance Expense $100.00 Baking Supplies Expense $1,025.00 Bal. $1,579.00 Baking Equipment $1,200.00 Dec. 15 Accounts Payable $50.00 5 $125.00 Dividends $500.00 Dec. 31 Interest Expense $15.00 Salaries Expense 31 adj $40.00 Common Stock $800.00 Interest Expense $15.00 Insurance Expense $100.00 Accounts Payable $75.00 Cash $50.00 23 $3,000.00 Service Revenue $3,525.00 Interest Payable $15.00 Dec. 31 $56.00 Dividend $500.00 Salaries Expense $856.00 Interest Expense $15.00 Interest Payable $15.00 (Paid Cell Phone bill received Nov. 30) Unearned Revenue $625.00 (To record Interest on Notes Payable) $40.00 Service Revenue $4,275.00 Cell Phone Expense $125.00 Salaries Expense $856.00 Salaries Payable $56.00 Dec. 16 Accounts Payable $600.00 Bal. $3,175.00 Advertising Supplies $95.00 Dec. 31 Insurance Expense $100.00 Bal. $56.00 Unearned Revenue $250.00 Total Expenses $2,196.00 Cell Phone Expense $125.00 Unearned Revenue $300.00 Cash $600.00 Baking Supplies $1,375.00 Prepaid Insurance $100.00 Accumulated Depreciation - Baking Equip Advertising Expense $50.00 Net Income $2,329.00 (To close expense accounts) Notes Payable $2,000.00 (Paid for website design) Dividend Salaries Expense $800.00 (To record Insurance that has expired) Accounts Payable 31 adj $40.00 Advertising Supplies $45.00 (3 ) Common Stock $800.00 Dec. 19 Cash $50.00 Dec. 28 $500.00 Telephone Expense $50.00 Dec. 31 Accounts Receivable $375.00 Dec. 31 $75.00 Ammoritization Expense $25.00 COOKIE CREATIONS INC. 31 Income Summary $2,079.00 Retained Earnings $1,579.00 Unearned Revenue $50.00 Service Revenue $375.00 $40.00 Baking Supplies $350.00 Retained Earnings Statement Retained Earnings $2,079.00 (Deposit for class in Jan) $500.00 $7,450.00 $7,450.00 (Class given, invoice sent in Jan) Bal. $75.00 Baking Supplies Expense $1,025.00 For the Year Ending Dec 31, 2006 (To close net income to retained earnings) $4,900.00 $4,990.00 Dec. 23 Cash $3,500.00 Dec. 31 Baking Supplies Expense $1,025.00 Ammoritization Expense Depreciation Expense - Baking Equip $40.00 (4) Service Revenue $3,000.00 Baking Supplies Baking Supplies $1,025.00 Unearned Revenue 31 adj $25.00 Insurance Expense $100.00 Retained Earnings, November 1 $- 31 Retained Earnings $500.00 Accounts Receivable $500.00 Dec. 23 $1,250.00 (To record baking supplies used) Dec. 31 $375.00 Interest Expense $15.00 Add: Net Income $2,329.00 Dividends $500.00