a1 Prepare the adjusting journal entries.

a2 Post the adjusting journal entries.

b Prepare an adjusted balance

Interest Payable 4. Nov. 30 Accounts Receivable Cash Prepaid Advertising Question 1 of 1 Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Interest Payable Unearned Service Revenue Owner's Capital Depreciation Expense Service Revenue 1350 1200 Post the adjusting journal entries. (Post entries in the order of journal entries presented in the previous question.) 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 she 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 5% 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 gingerbread cookies. The next day, Natalie prepares an invoice for $310 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. Prepare the adjusting journal entries. (List all debit entrles before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Prepare an adjusted trial balance. Week 5 -Assignment: Mastering the Accounting Cycle, Part II Question 1 of 1 Supplies Expense Date Explanation Ref. Nov. 30 12 Debit Credit Depreciation Expense Credit J2 Debit Nov. 30 Explanation Ref. \begin{tabular}{lllll|} \hline & & \multicolumn{2}{c}{ Interest Expense } \\ Date Explanation & Ref. & Debit & Credit \\ Nov. 30 & 32 & \end{tabular} Supplies \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline Date & Explanation & Ref. & Debit & & Credit & Balance & \\ \hline Nov. 30 & Balance & & & & & & 130 \\ \hline 30 & & 32 & & 125 & & & 125 \\ \hline \end{tabular} Prepaid Insurance Date Explanation Ref. Nov. 30 Balance Debit Debit Credit Credit Nov. 30 Balance Debit Debit Equipment Balance 1,350 Question 1 of 1 Service Revenue Interest Expense Utilities Expense Advertising Expense 65 Supplies Expense Totals Nov. 8 Natalie cashes her U.S. Savings Bonds and receives $530, which she deposits in her personal bank account. 8 She opens a bank account under the name "Cookie Creations" and transfers $510 from her personal account to the new account. 11 Natalie pays $65 for advertising. 13 She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for \$130 cash. (Hint: Use Supplies account.) 14 Natalie starts to gather some baking equipment to take with her when teaching the cookie classes. She has an excellent top-of-the-line food processor and mixer that originally cost her $770. Natalie decides to start using it only in her new business. She estimates that the equipment is currently worth $300. She invests the equipment in the business. 16 Natalie realizes that her initial cash investment is not enough. Her grandmother lends her $1,920 cash, for which Natalie signs a note payable in the name of the business. Natalie deposits the money in the business bank account. (Hint: The note does not have to be repaid for 24 months. As a result, the note payable should be reported in the accounts as the last liability and also on the balance sheet as the last liability.) 17 She buys more baking equipment for $900 cash. 20 She teaches her first class and collects $130 cash. 25 Natalie books a second class for December 4 for $150. She receives $30 cash in advance as a down payment. 30 Natalie pays $1,350 for a one-year insurance policy that will expire on December 1, 2022. \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ Service Revenue } \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance & \\ \hline Nov. 30 & Balance & & & & & 130 \\ \hline 30 & & J2 & 0 & 0 & & 0 \\ \hline \multicolumn{7}{|c|}{ Utilities Expense } \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance & \\ \hline Nov. 30 & & 32 & & & & \\ \hline \multicolumn{7}{|c|}{ Advertising Expense } \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance & \\ \hline Nov. 30 & & & \multicolumn{2}{|c|}{65} & & 65 \\ \hline \multicolumn{7}{|c|}{ Supplies Expense } \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance & \\ \hline \end{tabular} Question 1 of 1 0.48/1 \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Accumulated Depreciation-Equipment } \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline Nov. 30 & & & & & \\ \hline \multicolumn{6}{|c|}{ Accounts Payable } \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline Nov. 30 & & J2 & & & 1920 \\ \hline \multicolumn{6}{|c|}{ Interest Payable } \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline Nov. 30 & & 32 & & & \\ \hline \multicolumn{6}{|c|}{ Unearned Service Revenue } \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline Nov. 30 & Balance & & & & 30 \\ \hline \end{tabular} Interest Payable 4. Nov. 30 Accounts Receivable Cash Prepaid Advertising Question 1 of 1 Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Interest Payable Unearned Service Revenue Owner's Capital Depreciation Expense Service Revenue 1350 1200 Post the adjusting journal entries. (Post entries in the order of journal entries presented in the previous question.) 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 she 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 5% 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 gingerbread cookies. The next day, Natalie prepares an invoice for $310 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. Prepare the adjusting journal entries. (List all debit entrles before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Prepare an adjusted trial balance. Week 5 -Assignment: Mastering the Accounting Cycle, Part II Question 1 of 1 Supplies Expense Date Explanation Ref. Nov. 30 12 Debit Credit Depreciation Expense Credit J2 Debit Nov. 30 Explanation Ref. \begin{tabular}{lllll|} \hline & & \multicolumn{2}{c}{ Interest Expense } \\ Date Explanation & Ref. & Debit & Credit \\ Nov. 30 & 32 & \end{tabular} Supplies \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline Date & Explanation & Ref. & Debit & & Credit & Balance & \\ \hline Nov. 30 & Balance & & & & & & 130 \\ \hline 30 & & 32 & & 125 & & & 125 \\ \hline \end{tabular} Prepaid Insurance Date Explanation Ref. Nov. 30 Balance Debit Debit Credit Credit Nov. 30 Balance Debit Debit Equipment Balance 1,350 Question 1 of 1 Service Revenue Interest Expense Utilities Expense Advertising Expense 65 Supplies Expense Totals Nov. 8 Natalie cashes her U.S. Savings Bonds and receives $530, which she deposits in her personal bank account. 8 She opens a bank account under the name "Cookie Creations" and transfers $510 from her personal account to the new account. 11 Natalie pays $65 for advertising. 13 She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for \$130 cash. (Hint: Use Supplies account.) 14 Natalie starts to gather some baking equipment to take with her when teaching the cookie classes. She has an excellent top-of-the-line food processor and mixer that originally cost her $770. Natalie decides to start using it only in her new business. She estimates that the equipment is currently worth $300. She invests the equipment in the business. 16 Natalie realizes that her initial cash investment is not enough. Her grandmother lends her $1,920 cash, for which Natalie signs a note payable in the name of the business. Natalie deposits the money in the business bank account. (Hint: The note does not have to be repaid for 24 months. As a result, the note payable should be reported in the accounts as the last liability and also on the balance sheet as the last liability.) 17 She buys more baking equipment for $900 cash. 20 She teaches her first class and collects $130 cash. 25 Natalie books a second class for December 4 for $150. She receives $30 cash in advance as a down payment. 30 Natalie pays $1,350 for a one-year insurance policy that will expire on December 1, 2022. \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ Service Revenue } \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance & \\ \hline Nov. 30 & Balance & & & & & 130 \\ \hline 30 & & J2 & 0 & 0 & & 0 \\ \hline \multicolumn{7}{|c|}{ Utilities Expense } \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance & \\ \hline Nov. 30 & & 32 & & & & \\ \hline \multicolumn{7}{|c|}{ Advertising Expense } \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance & \\ \hline Nov. 30 & & & \multicolumn{2}{|c|}{65} & & 65 \\ \hline \multicolumn{7}{|c|}{ Supplies Expense } \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance & \\ \hline \end{tabular} Question 1 of 1 0.48/1 \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Accumulated Depreciation-Equipment } \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline Nov. 30 & & & & & \\ \hline \multicolumn{6}{|c|}{ Accounts Payable } \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline Nov. 30 & & J2 & & & 1920 \\ \hline \multicolumn{6}{|c|}{ Interest Payable } \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline Nov. 30 & & 32 & & & \\ \hline \multicolumn{6}{|c|}{ Unearned Service Revenue } \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline Nov. 30 & Balance & & & & 30 \\ \hline \end{tabular}