COOKIE CREATIONS PART 4 Nathalie had a very busy December. At the end of the month, after journalizing and posting the December transactions, Nathalie had the following unadjusted trial balance. Nathalie decided to make financial statement every month. COOKIE CREATIONS UNADJUSTED TRIAL BALANCE DECEMBER 31, 2019 Cash A/R Supplies Prepaid Insurance Equipment Accum. Depre-equipment Unearned service revenue Notes payable Interest payable Share capital-ordinary Retained earnings Dividend Service revenue Advertising expense Salaries expense Debit Credit $3.345 1.300 540 1.320 1.200 $20 750 2.000 5 800 255 150 4.575 50 500 $8.405 $8.405 As of December 31, the following adjusting entry data are provided. 1. A count reveals that $390 of baking supplies were used. 2. Depreciation is recorded on the baking equipment purchased in November. The baking equipment has a useful life of 5 years. 3. Interest on the note payable is accrued. 4. A cell phone invoice is received for $75. The invoice is for services provided during the month of December and is due on January 15 5. Natalie is unexpectedly telephoned on December 28 to give a cookie class at the neighborhood community center on December 31. In early January Cookie Creations sends an invoice for $450 to the community center. 6. Because the cookie-making class occurred unexpectedly on December 31 and is for such a large group of children, Natalie's assistant helps out. Her assistant worked 7 hours at a rate of $8 per hour. 7. On Dec 9, Cookie Creations received $750 in advance from the local school board for five classes that the company will give during December and January. An analysis of the unearned revenue account reveals that two of the five classes paid for by the local school board on December 9 still have not been taught by the end of December 8. One month's worth of insurance has expired. Nathalie discovered the following errors made in December 2019: 9. A collection of $300 from a client on account on Dec 8 was debited to Cash $300 and credited to Service Revenue $300. 10. On Dec 23, Cookie Creations issued check for $800 to Natalie's assistant. The check, was incorrectly journalized and posted for $500. Instructions a. Prepare the adjusting journal entries and correcting entries on December 31, 2019 b. Enter the adjustment and correction on the worksheet, and complete the worksheet. C. Prepare an income statement and retained earnings statement for the month ended December 31, 2019 and a statement financial position as of December 31, 2019. d. Prepare closing entries as of December 31, 2019 e. Prepare a post-closing trial balance. Note: Khusus soal b (worksheet) boleh dikerjakan menggunakan excel, tapi yang lainnya harus dikerjakan secara manual (tulis tangan)
