COOKIE CREATIONS Adjusted Trial Balance December 31, 2013 Credit Debit $2,929 675 95 1,550 Cash Accounts receivable Supplies Equipment Accumulated depreciation-equipment Accounts payable Salaries payable Unearned revenue Interest payable Notes payable, 3%, principal and interest due November 28, 2014 N. Koebel, capital Revenue Advertising expense Salaries expense Telephone expense Supplies expense Depreciation expense Interest expense $ 78 76 48 100 8 3,000 1,450 1,225 325 48 174 103 78 8 $5,985 $5,985 Instructions Using the information in the adjusted trial balance, do the following: (a) Prepare an income statement for the two months ended December 31, 2013, if you have not already done so in Chapter 3. (b) Prepare a statement of owner's equity for the two months ended December 31, 2013, and a classified balance sheet at December 31, 2013. (c) Calculate Cookie Creations' working capital, current ratio, and acid-test ratio. Comment on Cookie Creations' liquidity. (d) Natalie has decided that her year end will be December 31, 2013. Prepare closing entries. (e) Prepare a post-closing trial balance. (f) Natalie has reviewed the financial statements that you have prepared. When she recorded the purchase of equipment in December, she thought the equipment should be recorded as "supplies expense. After reviewing her accounting text, she remembered that the purchase of equipment should be recorded as an asset and made an entry to correct her error. Had she not done a correct- ing entry, what impact would that journal entry have had on the financial statements at the end of 2013