(c) Prepare any necessary general journal entries associated with the bank reconciliation. Use the table below for the journal entrics. (f) In addition to the bank reconciliation joumal entries prepare the following adjusting joumal entries in the table on the next page: a. January depreciation of $20 is recorded on the banking equipment purchased in Novermber 2025 . b. A count reveals that $25 of supplies was used. c. Amortization (which is similar to depreciation) of $25 is recorded on the website. (Credit the Website account and debit Amortization Expense for the amount of the amortization.) d. Interest on the 5% note payable with Badger Bank is acerued. (Assume 1 month of interest acerued during January.) Round to nearest dollar. Interest will not be paid until the note is due. 5. One month's worth of insurance has expired. Insurance expires at a rate of $100 a month. 6. An analysis of the Uneamed Service Revenue sccount reveals that $120 of the December 31, 2025 balance in Unearned Service Revenue has not been eamed as of January 31, 2026. In other words, $240 of Uneamed Service Revenue was eamed daring the month of January 2026. 7. Record January depreciation on the van assuming the van is expected to last for 5 years and the estimated salvage value is $6,500. 8. Bad debt expense for the month of January is estimated to be 87. (4) Jan 31 (5) Jan31 (6) Jan31 (7) Jan31 (8) Jan31 (g) Post adjusting journal entries for the month ending January 31, 2026 in the T-Accounts from part (b). Make sure you post the adjusting journal entries for part (e) and part (f). (h) Prepare an adjusted trial balance as of January 31, 2026. Check Figure: The total of all debits should be $55,769, which should equal the total of credits of $55,769. COOKIE CREATIONS INC. Adjusted Trial Balance January 31, 2026 (i) Prepare an income statement and a retained earnings statement for the 1 -month period ending January 31 , 2026. You DO NOT need to prepare a balance sheet. Assume no dividends were paid out in January 2026. Check Figure: Net Income = 1,501; Ending Retained Earnings =6,291. COOKIE CREATIONS INC. Income Statement For the Month Ended January 31,2026 COOKIE CREATIONS INC. Retained Earnings Statement For the Month Ended January 31, 2026 (j) Prepare and post closing entries as of January 31, 2026. Assume no dividends were paid out in January 2026. (2) Dec 31 (d) Prepare a bank reconciliation for January 31, 2026 using the following information. Check Figure: The adjusted cash balance per the bank should be $2,96I which should equal the adjusted cash balance per the books of $2.961. GENERAL LEDGER-COOKIE CREATIONS INC. Statement of Account-Cookic Creations Inc. January 31, 2026 (c) Prepare any necessary general journal entries associated with the bank reconciliation. Use the table below for the journal entrics. (f) In addition to the bank reconciliation joumal entries prepare the following adjusting joumal entries in the table on the next page: a. January depreciation of $20 is recorded on the banking equipment purchased in Novermber 2025 . b. A count reveals that $25 of supplies was used. c. Amortization (which is similar to depreciation) of $25 is recorded on the website. (Credit the Website account and debit Amortization Expense for the amount of the amortization.) d. Interest on the 5% note payable with Badger Bank is acerued. (Assume 1 month of interest acerued during January.) Round to nearest dollar. Interest will not be paid until the note is due. 5. One month's worth of insurance has expired. Insurance expires at a rate of $100 a month. 6. An analysis of the Uneamed Service Revenue sccount reveals that $120 of the December 31, 2025 balance in Unearned Service Revenue has not been eamed as of January 31, 2026. In other words, $240 of Uneamed Service Revenue was eamed daring the month of January 2026. 7. Record January depreciation on the van assuming the van is expected to last for 5 years and the estimated salvage value is $6,500. 8. Bad debt expense for the month of January is estimated to be 87. (4) Jan 31 (5) Jan31 (6) Jan31 (7) Jan31 (8) Jan31 (g) Post adjusting journal entries for the month ending January 31, 2026 in the T-Accounts from part (b). Make sure you post the adjusting journal entries for part (e) and part (f). (h) Prepare an adjusted trial balance as of January 31, 2026. Check Figure: The total of all debits should be $55,769, which should equal the total of credits of $55,769. COOKIE CREATIONS INC. Adjusted Trial Balance January 31, 2026 (i) Prepare an income statement and a retained earnings statement for the 1 -month period ending January 31 , 2026. You DO NOT need to prepare a balance sheet. Assume no dividends were paid out in January 2026. Check Figure: Net Income = 1,501; Ending Retained Earnings =6,291. COOKIE CREATIONS INC. Income Statement For the Month Ended January 31,2026 COOKIE CREATIONS INC. Retained Earnings Statement For the Month Ended January 31, 2026 (j) Prepare and post closing entries as of January 31, 2026. Assume no dividends were paid out in January 2026. (2) Dec 31 (d) Prepare a bank reconciliation for January 31, 2026 using the following information. Check Figure: The adjusted cash balance per the bank should be $2,96I which should equal the adjusted cash balance per the books of $2.961. GENERAL LEDGER-COOKIE CREATIONS INC. Statement of Account-Cookic Creations Inc. January 31, 2026
