4She buys five deluxe mixers on account from Kzinski Supply Co. for $2,750, terms n/30.

6She pays $100 freight on the January 4 purchase.

7Natalie returns one of the mixers to Kzinski because it was damaged during shipping. Kzinski issues Cookie Creations credit for the cost of the mixer plus $20 for the cost of freight that was paid on January 6 for one mixer.

8She collects the amount due from the neighborhood community center that was accrued at the end of December 2017.

12She sells three deluxe mixers on account for $3,300, FOB destination, terms n/30. The mixers cost $570 each (including freight).

13Natalie pays her cell phone bill previously accrued in the December adjusting journal entries.

14She pays $75 of delivery charges for the three mixers that were sold on January 12.

14She buys four deluxe mixers on account from Kzinski Supply Co. for $2,200, terms n/30.

17Natalie is concerned that there is not enough cash available to pay for all of the mixers purchased. She issues additional common stock for $1,000.

18She pays $80 freight on the January 14 purchase.

20She sells two deluxe mixers for $2,200 cash.

28Natalie issues a check to her assistant. Her assistant worked 20 hours in January and is also paid for amounts owing at December 31, 2017. Recall that Natalie's assistant earns $8 an hour.

28Natalie collects amounts due from customers in the January 12 transaction.

31She pays Kzinski all amounts due.

31Cash dividends of $750 are paid.

The adjusted trial balance from December is presented below.

COOKIE CREATIONS INC.

Adjusted Trial Balance

December 31, 2017

DebitCredit

Cash........................................................................................................... $1,340

Accounts Receivable................................................................................... 1,450

Supplies.......................................................................................................... 400

Prepaid Insurance........................................................................................ 1,100

Equipment.................................................................................................... 1,200

Accumulated DepreciationEquipment..............................................................$40

Website........................................................................................................... 575

Accounts Payable.................................................................................................75

Interest Payable....................................................................................................23

Salaries and Wages Payable...............................................................................56

Unearned Service Revenue.................................................................................360

Notes Payable.......................................................................................................2,000

Common Stock.....................................................................................................800

Dividends........................................................................................................ 500

Service Revenue..................................................................................................5,450

Utilities Expense............................................................................................. 125

Salaries and Wages Expense........................................................................ 856

Supplies Expense........................................................................................ 1,070

Depreciation Expense....................................................................................... 40

Amortization Expense....................................................................................... 25

Interest Expense............................................................................................... 23

Insurance Expense....................................................................................100

$8,804$8,804

As of January 31, the following adjusting entry data are available.

1.A count of brochures and posters reveals that none were used in January.

2.A count of baking supplies reveals that none were used in January.

3.Another month's worth of depreciation needs to be recorded on the baking equipment bought in November. (Recall that the baking equipment has a useful life of 5 years or 60 months.)

4.One month's worth of amortization (write-off) needs to be recorded on the website. (Recall that the website has a useful life of 2 years or 24 months.)

5.An additional month's worth of interest on her grandmother's loan needs to be accrued. (The interest rate is 9%.)

6.One month's worth of insurance has expired.

7.Natalie receives her cell phone bill, $75. The bill is for services provided in January and is due February 15. (Recall that the cell phone is used only for business purposes.)

8.An analysis of the unearned revenue account reveals that Natalie has not had time to teach any of these lessons this month because she has been so busy selling mixers. As a result, there is no change to the unearned revenue account. Natalie hopes to book the outstanding lessons in February.

9.An inventory count of mixers at the end of January reveals that Natalie has three mixers remaining.

Instructions

Using the information that you have gathered and the adjusted trial balance from December, plus the new information above, do the following:

(a)Answer Natalie's questions.

(b)Prepare and post the January 2018 transactions.

(c)Prepare a trial balance.

(d)Prepare and post the adjusting journal entries required.

(e)Prepare an adjusted trial balance.

(f)Prepare a multiple-step income statement and retained earnings statement for the month ended January 31, 2018.

(g)Prepare a classified balance sheet as of January 31, 2018.

(c)Totals12,434

(f)Net income2,180

(g)Total assets8,414