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 Natalies assistant earns $8 an hour.
28		Natalie collects amounts due from customers from the January 12 transaction.
31		She pays Kzinski all amounts due.
31		Cash dividends of $750 are paid.

The adjusted trial balance from December is presented below.

COOKIE CREATIONS INC. Adjusted Trial Balance December 31, 2020
		Debit		Credit
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

Ignore income tax effects.

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 months 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 months 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 months worth of interest on her grandmothers loan needs to be accrued. (The interest rate is 9%.)
6.		One months 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 schedule the outstanding lessons in February.
9.		An inventory count of mixers at the end of January reveals that Natalie has three mixers remaining.

(a)Prepare the adjusting journal entries required.

(b)Post the adjusting journal entries required.