A trial balance is presented below for November 30, 2018

Cookie Creations

Trial Balance

November 30, 2018

Debit Credit

Cash 245

Supplies 125

Prepaid Insurance 1320

Equipment 1200

Unearned Service Revenue 30

Notes Payable 2000

Common Stock 800

Service Revenue 125

Advertising Expense 65

2955 2955

It is the end of November and Natalie has been in touch with her grandmother. Her grandmother asked Natalie how well things went in her first month of business. Natalie, too, would like to know if the company has been profitable or not during November. Natalie realizes that in order to determine Cookie Creations' income, she must first make adjustments.

Natalie puts together the following additional information.

1.A count reveals that $35 of baking supplies were used during November.

2.Natalie estimates that all of her baking equipment will have a useful life of 5 years or 60 months. (Assume Natalie decides to record a full month's worth of depreciation, regardless of when the equipment was obtained by the business.)

3.Natalie's grandmother has decided to charge interest of 6% on the note payable extended on November 16. The loan plus interest is to be repaid in 24 months. (Assume that half a month of interest accrued during November.)

4.On November 30, a friend of Natalie's asks her to teach a class at the neighborhood school. Natalie agrees and teaches a group of 35 first-grade students how to make Santa Claus cookies. The next day, Natalie prepares an invoice for $300 and leaves it with the school principal. The principal says that he will pass the invoice along to the head office, and it will be paid sometime in December.

5.Natalie receives a utilities bill for $45. The bill is for utilities consumed by Natalie's business during November and is due December 15.

The adjusting journal entries.

1. Nov 30
2. Nov 30
3. Nov 30
4. Nov 30
5. Nov 30

Post the adjusting journal entries

Dr Cr

Cash

Accounts Receivable

Supplies

Prepaid Insurance

Equipment

Accumulated Depreciation-Equipment

Accounts Payable

Interest Payable

Unearned Service Revenue

Notes Payable

Common Stock

Service Revenue

Utilities Expense

Advertising Expense

Supplies Expense

Depreciation Expense

Interest Expense

An adjusted trial balance

Using the adjusted trial balance, calculate Cookie Creation's net income or net loss for the month of November 2018.