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could you just do the journal entries and adjusted entry please December 23 Additional revenue during the month for cookie-making classes amounts to $4,000 (Elizabeth
could you just do the journal entries and adjusted entry please
December 23 Additional revenue during the month for cookie-making classes amounts to $4,000 (Elizabeth has not had time to account for each class individually). $3,000 in cash has been collected and $1,000 is still outstanding. (This is in addition to December 5 and December 9 transactions). December 23 Issues a check to Elizabeth's assistant for $800. Her assistant worked approximately 100 hours from the time in which she was hired until December 23. December 28 Taste Buds Kitchen, Inc, pays a dividend of $500 to the common shareholder (Elizabeth). Year-End Adjusting Entries. As of December 31, Taste Buds Kitchen's year-end, the following adjusting entry data are provided: a. A count reveals that $100 of baking and marketing supplies were used. b. Depreciation is recorded on the baking equipment purchased in November. The baking equipment has a useful life of five years. Assume that 2 months' worth of depreciation is required. Record depreciation expense with a debit to depreciation expense and credit accumulated depreciation. c. Interest on the note payable is accrued. (Assume that 2 months of interest accrued during November and December). Round to the nearest dollar. d. One month's worth of insurance has expired. e. Elizabeth is unexpectedly telephoned on December 28 to give a cookie-baking class at the neighborhood community center on December 31 . In early January, Taste Buds sends an invoice for $450 to the community center. f. A cell phone invoice is received for $75 for the month of December. Payment for the invoice is due on January 15 . g. Because the cookie-baking class occurred unexpectedly on December 31 and is for such a large group of children, Elizabeth's assistant helps her out. Her assistant worked seven hours at a rate of $8 per hour. The assistant will be paid during the next pay period in the new year. h. 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. The $60 deposit received on December 19 for another class also remains unearned. Small business entrepreneur Elizabeth O'Brien decides to start up her own business to provide cooking classes to the local community. Taste Buds Kitchen not only provides cooking classes but also provides sells pre-packaged ingredients called "Taste Buds at Home" that customers can purchase to recreate gourmet meals at home. In November 2021, Elizabeth incorporates her business Taste Buds Kitchen, Inc. The following events occur in November and December. the first two months of operations: November 2021 November 8 Elizabeth cashes in her U.S. Savings Bond and receives $520, which she deposits in her personal bank account. November 8 Elizabeth purchases $500 of common stock in Taste Buds Kitchen. November 14 Taste Buds Kitchen pays $125 to purchase baking supplies, such as flour. sugar, butter, and chocolate chips (Account: Supplies). November 15 Elizabeth starts to gather some equipment to take with her when teaching the cooking classes. She has an excellent top-of-the-line food processor and mixer that originally cost her $550. Elizabeth decides to start using it only in her business. She estimates that the equipment is currently worth $300, and she transfers the equipment into the business in exchange for additional common stock. November 16 The company needs more cash to sustain its operations. Elizabeth decides to borrow from EG credit union, and the bank lends the company $2,000 cash, in exchange for a two-year, 9% note payable. Interest and the principal are payable at maturity. November 17 Taste Buds Kitchen pays $900 for additional baking equipment. November 18 Elizabeth schedules her first class for November 29. She will receive $100 on the date of the class. November 25 Elizabeth books a second class for December 5 for $150. She receives a $60 cash down payment, in advance. (continued on next page) December 23 Additional revenue during the month for cookie-making classes amounts to $4,000 (Elizabeth has not had time to account for each class individually). $3,000 in cash has been collected and $1,000 is still outstanding. (This is in addition to December 5 and December 9 transactions). December 23 Issues a check to Elizabeth's assistant for $800. Her assistant worked approximately 100 hours from the time in which she was hired until December 23. December 28 Taste Buds Kitchen, Inc, pays a dividend of $500 to the common shareholder (Elizabeth). Year-End Adjusting Entries. As of December 31, Taste Buds Kitchen's year-end, the following adjusting entry data are provided: a. A count reveals that $100 of baking and marketing supplies were used. b. Depreciation is recorded on the baking equipment purchased in November. The baking equipment has a useful life of five years. Assume that 2 months' worth of depreciation is required. Record depreciation expense with a debit to depreciation expense and credit accumulated depreciation. c. Interest on the note payable is accrued. (Assume that 2 months of interest accrued during November and December). Round to the nearest dollar. d. One month's worth of insurance has expired. e. Elizabeth is unexpectedly telephoned on December 28 to give a cookie-baking class at the neighborhood community center on December 31 . In early January, Taste Buds sends an invoice for $450 to the community center. f. A cell phone invoice is received for $75 for the month of December. Payment for the invoice is due on January 15 . g. Because the cookie-baking class occurred unexpectedly on December 31 and is for such a large group of children, Elizabeth's assistant helps her out. Her assistant worked seven hours at a rate of $8 per hour. The assistant will be paid during the next pay period in the new year. h. 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. The $60 deposit received on December 19 for another class also remains unearned. Small business entrepreneur Elizabeth O'Brien decides to start up her own business to provide cooking classes to the local community. Taste Buds Kitchen not only provides cooking classes but also provides sells pre-packaged ingredients called "Taste Buds at Home" that customers can purchase to recreate gourmet meals at home. In November 2021, Elizabeth incorporates her business Taste Buds Kitchen, Inc. The following events occur in November and December. the first two months of operations: November 2021 November 8 Elizabeth cashes in her U.S. Savings Bond and receives $520, which she deposits in her personal bank account. November 8 Elizabeth purchases $500 of common stock in Taste Buds Kitchen. November 14 Taste Buds Kitchen pays $125 to purchase baking supplies, such as flour. sugar, butter, and chocolate chips (Account: Supplies). November 15 Elizabeth starts to gather some equipment to take with her when teaching the cooking classes. She has an excellent top-of-the-line food processor and mixer that originally cost her $550. Elizabeth decides to start using it only in her business. She estimates that the equipment is currently worth $300, and she transfers the equipment into the business in exchange for additional common stock. November 16 The company needs more cash to sustain its operations. Elizabeth decides to borrow from EG credit union, and the bank lends the company $2,000 cash, in exchange for a two-year, 9% note payable. Interest and the principal are payable at maturity. November 17 Taste Buds Kitchen pays $900 for additional baking equipment. November 18 Elizabeth schedules her first class for November 29. She will receive $100 on the date of the class. November 25 Elizabeth books a second class for December 5 for $150. She receives a $60 cash down payment, in advance. (continued on next page) Step by Step Solution
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