Because Natalie has had such a successful first few months, she is considering other opportunities to develop her business. One opportunity is to become the exclusive distributor of a line of fine European mixers. The current cost of a mixer is approximately $550, and Natalie would sell each one for $1,100. Natalie comes to you for advice on how to account for these mixers. Each appliance has a serial number and can be easily identified. In the end, Natalie decides to use the perpetual method of accounting for inventory, and the following transactions happen during the month of January. Jan. 4 She buys five deluxe mixers on account from Kzinski Supply Co. for $2,750, terms n/30. 6 She pays $100 freight on the January 4 purchase. 7 Natalie 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. 8 She collects the amount due from the neighborhood community center that was accrued at the end of December 2020. 12 She sells three deluxe mixers on account for $3,300, FOB destination, terms n/30. The mixers cost $570 each (including freight). 13 Natalie pays her cell phone bill previously accrued in the December adjusting journal entries. 14 She pays $75 of delivery charges for the three mixers that were sold on January 12. 14 She buys four deluxe mixers on account from Kzinski Supply Co. for $2,200, terms n/30. 17 Natalie 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. 18 She pays $80 freight on the January 14 purchase. 20 She sells two deluxe mixers for $2,200 cash. 28 Natalie issues a check to her assistant. Her assistant worked 20 hours in January and is also paid for the amount accrued at December 31, 2020. Recall that Natalie's assistant earns $8 an hour. 28 Natalie collects amounts due from customers from the January 12 transaction. 31 She pays Kzinski all amounts due. COOKIE CREATIONS INC. Adjusted Trial Balance December 31, 2020 CashAccountsReceivableSuppliesPrepaidInsuranceEquipmentDebit$1,3401,4504001,1001,200 Accumulated Depreciation-Equipment $40 Website 575 Accounts Payable 75 Interest Payable 23 Salaries and Wages Payable 56 Unearned Service Revenue 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 $8,804100$8,804 (To record sales revenue) Jan. 12 Cost of Goods Sold 1710 (To record cost of goods sold) Jan. 13 Accounts Payable Cash Jan. 14 Freight-Out Jan. 14 Freight-Out Jan. 14 Inventory Retained Earnings Jan. 17 Cash Common Stock Jan. 18 Inventory Cash Jan. 20 Cash Sales Discounts (To record sales revenue) Jan. 20 Cost of Goods Sold Inventory (To record cost of goods sold) Jan.28 Salaries and Wages Payable Salaries and Wages Expense (To record Natalie's assistant payment details) Post the January 2021 transactions. (Post entries in the order of journal entries presented in the previous part. If balance is zero, please enter 0.) Supplies \begin{tabular}{llllll} Date & Explanation & Debit & Credit & Balance \\ \hline Jan. 1 - Balance & & & & \\ \hline \end{tabular} Prepaid Insurance \begin{tabular}{llll|l|} Date & Explanation & Debit & \multicolumn{1}{c|}{ Credit } & Balance \\ \hline Jan. 1 Balance & & & & \\ \hline \end{tabular} Equipment \begin{tabular}{llllll|} Date & Explanation & Debit & Credit & \multicolumn{1}{c|}{ Balance } \\ \hline Jan. 1 - Balance & & & & 1200 \\ \hline \end{tabular} Accumulated Depreciation-Equipment Accounts Payable Explanation Debit Credit Balance Balance Jan. 13 75 Jan. 14 . Jan. 31 Salaries and Wages Payable Unearned Service Revenue Common Stock Dividends Sales Revenue Cost of Goods Sold Salaries and Wages Expense Freight-out \begin{tabular}{l} Date Debit \\ \hline Jan. 14v Denation \\ \hline \end{tabular} Credit Balance eTextbook and Media Attempts: 3 of 3 used Prepare a trial balance. COOKIE CREATIONS INC. Trial Balance Debit Credit $ $ (1) Because Natalie has had such a successful first few months, she is considering other opportunities to develop her business. One opportunity is to become the exclusive distributor of a line of fine European mixers. The current cost of a mixer is approximately $550, and Natalie would sell each one for $1,100. Natalie comes to you for advice on how to account for these mixers. Each appliance has a serial number and can be easily identified. In the end, Natalie decides to use the perpetual method of accounting for inventory, and the following transactions happen during the month of January. Jan. 4 She buys five deluxe mixers on account from Kzinski Supply Co. for $2,750, terms n/30. 6 She pays $100 freight on the January 4 purchase. 7 Natalie 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. 8 She collects the amount due from the neighborhood community center that was accrued at the end of December 2020. 12 She sells three deluxe mixers on account for $3,300, FOB destination, terms n/30. The mixers cost $570 each (including freight). 13 Natalie pays her cell phone bill previously accrued in the December adjusting journal entries. 14 She pays $75 of delivery charges for the three mixers that were sold on January 12. 14 She buys four deluxe mixers on account from Kzinski Supply Co. for $2,200, terms n/30. 17 Natalie 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. 18 She pays $80 freight on the January 14 purchase. 20 She sells two deluxe mixers for $2,200 cash. 28 Natalie issues a check to her assistant. Her assistant worked 20 hours in January and is also paid for the amount accrued at December 31, 2020. Recall that Natalie's assistant earns $8 an hour. 28 Natalie collects amounts due from customers from the January 12 transaction. 31 She pays Kzinski all amounts due. COOKIE CREATIONS INC. Adjusted Trial Balance December 31, 2020 CashAccountsReceivableSuppliesPrepaidInsuranceEquipmentDebit$1,3401,4504001,1001,200 Accumulated Depreciation-Equipment $40 Website 575 Accounts Payable 75 Interest Payable 23 Salaries and Wages Payable 56 Unearned Service Revenue 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 $8,804100$8,804 (To record sales revenue) Jan. 12 Cost of Goods Sold 1710 (To record cost of goods sold) Jan. 13 Accounts Payable Cash Jan. 14 Freight-Out Jan. 14 Freight-Out Jan. 14 Inventory Retained Earnings Jan. 17 Cash Common Stock Jan. 18 Inventory Cash Jan. 20 Cash Sales Discounts (To record sales revenue) Jan. 20 Cost of Goods Sold Inventory (To record cost of goods sold) Jan.28 Salaries and Wages Payable Salaries and Wages Expense (To record Natalie's assistant payment details) Post the January 2021 transactions. (Post entries in the order of journal entries presented in the previous part. If balance is zero, please enter 0.) Supplies \begin{tabular}{llllll} Date & Explanation & Debit & Credit & Balance \\ \hline Jan. 1 - Balance & & & & \\ \hline \end{tabular} Prepaid Insurance \begin{tabular}{llll|l|} Date & Explanation & Debit & \multicolumn{1}{c|}{ Credit } & Balance \\ \hline Jan. 1 Balance & & & & \\ \hline \end{tabular} Equipment \begin{tabular}{llllll|} Date & Explanation & Debit & Credit & \multicolumn{1}{c|}{ Balance } \\ \hline Jan. 1 - Balance & & & & 1200 \\ \hline \end{tabular} Accumulated Depreciation-Equipment Accounts Payable Explanation Debit Credit Balance Balance Jan. 13 75 Jan. 14 . Jan. 31 Salaries and Wages Payable Unearned Service Revenue Common Stock Dividends Sales Revenue Cost of Goods Sold Salaries and Wages Expense Freight-out \begin{tabular}{l} Date Debit \\ \hline Jan. 14v Denation \\ \hline \end{tabular} Credit Balance eTextbook and Media Attempts: 3 of 3 used Prepare a trial balance. COOKIE CREATIONS INC. Trial Balance Debit Credit $ $ (1)