Prepare and post closing entries as of December 31, 2017.
Continuing Cookie Chronicle 1
Continuing Cookie Chronicle
CCC4 Cookie Creations is gearing up for the winter holiday season. During the month of December 2017, 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 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).
The trial balance from November is shown below.
COOKIE CREATIONS INC.
November 30, 2017
Cash $ 340
Accounts Receivable 300
Prepaid Insurance 1,200
Accounts Payable $ 650
Unearned Service Revenue 60
Notes Payable 2,000
Common Stock 800
Service Revenue 400
Utilities Expense 50
As of December 31, Cookie Creations’ year-end, the following adjusting entry data are provided.
Using the information gathered from above and from the November trial balance, do the following:
(a) Journalize the above transactions.
(b) Post the December transactions.
(c) Prepare a trial balance at December 31, 2017.
(d) Prepare and post adjusting journal entries for the month of December.
(e) Prepare an adjusted trial balance as of December 31, 2017.
(f ) Prepare an income statement and a retained earnings statement for the 2-month period ending December 31, 2017, and a classified balance sheet as of December 31, 2017.
(g) Prepare and post closing entries as of December 31, 2017.
(h) Prepare a post-closing trial balance.
(c) Totals $8,160
(e) Totals $8,804
(f) Net income $3,211
(h) Totals $6,065
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