Natalie had a very busy December. At the end of the month, after journalizing and posting the December transactions and adjusting entries, Natalie prepared the following adjusted trial balance.

Instructions.

Using the information in the adjusted trial balance, do the following.

a. Prepare an income statement and an owner's equity statement for the 2 months ended December 31, 2021, and a classified balance sheet at December 31, 2021. The note payable has a stated interest rate of 6%, and the principal and interest are due on November 16, 2023.

b. Natalie has decided that her year-end will be December 31, 2021. Prepare and post closing entries as of December 31, 2021.

c. Prepare a post-closing trial balance.

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Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Cookie Creations Adjusted Trial Balance December 31, 2021 Interest Payable Unearned Service Revenue Notes Payable Owner's Capital Owner's Drawings Service Revenue Salaries and Wages Expense Utilities Expense Advertising Expense Supplies Expense Depreciation Expense Insurance Expense Interest Expense Debit $1,180 875 350 1,210 1,200 500 1,006 125 165 1,025 40 110 15 $7,801 Credit $ 40 75 56 15 300 2,000 800 4,515 $7,801