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, 2019, and a classified balance sheet at December 31, 2019. The note payable has a stated interest rate of 6%, and the principal and interest are due on November 16, 2021.

b. Natalie has decided that her year-end will be December 31, 2019. Prepare and post closing entries as of December 31, 2019.

c. Prepare a post-closing trial balance.

Transcribed Image Text:

Cookie Creations Adjusted Trial Balance December 31, 2019 Debit Credit Cash $1,180 Accounts Receivable 875 Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Interest Payable 350 1,210 1,200 $ 40 75 56 15 Unearned Service Revenue 300 2,000 Notes Payable Owner's Capital Owner's Drawings 800 500 Service Revenue 4,515 Salaries and Wages Expense Utilities Expense Advertising Expense Supplies Expense Depreciation Expense Insurance Expense Interest Expense 1,006 125 165 1,025 40 110 15 $7,801 $7,801