Natalie had a very busy December. At the end of the month, after journalizing and posting the December transactions and adjusting entries, Natalie prepared the following adjusted trial balance.

COOKIE CREATIONS Adjusted Trial Balance December 31, 2021
		Debit		Credit
Cash		$1,440
Accounts Receivable		1,070
Supplies		430
Prepaid Insurance		1,480
Equipment		1,500
Accumulated DepreciationEquipment				$50
Accounts Payable				90
Salaries and Wages Payable				68
Interest Payable				20
Unearned Service Revenue				370
Notes Payable				2,400
Owner's Capital				980
Owner's Drawings		610
Service Revenue				5,584
Salaries and Wages Expense		1,227
Utilities Expense		155
Advertising Expense		200
Supplies Expense		1,250
Depreciation Expense		50
Insurance Expense		130
Interest Expense		20
		$9,562		$9,562

Using the information in the adjusted trial balance, do the following.

(a1)

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Your answer is partially correct.

Prepare an income statement for the 2 months ended December 31, 2021. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

COOKIE CREATIONS Income Statement choose the accounting period December 31, 2021For the Two Months Ended December 31, 2021For the Year Ended December 31, 2021
select an opening name for section one DrawingsExpensesNet Income / (Loss)Owner's Capital, November 1Owner's Capital, December 31RevenuesTotal ExpensesTotal Revenues
enter an income statement item		$enter a dollar amount
select an opening name for section two DrawingsExpensesNet Income / (Loss)Owner's Capital, November 1Owner's Capital, December 31RevenuesTotal ExpensesTotal Revenues
enter an income statement item	$enter a dollar amount
enter an income statement item	enter a dollar amount
enter an income statement item	enter a dollar amount
enter an income statement item	enter a dollar amount
enter an income statement item	enter a dollar amount
enter an income statement item	enter a dollar amount
enter an income statement item	enter a dollar amount
select a closing name for section two DrawingsExpensesNet Income / (Loss)Owner's Capital, November 1Owner's Capital, December 31RevenuesTotal ExpensesTotal Revenues		enter a total amount for section two
select a closing name for this statement DrawingsExpensesNet Income / (Loss)Owner's Capital, November 1Owner's Capital, December 31RevenuesTotal ExpensesTotal Revenues		$enter a total net income or loss amount

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(a2)

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Prepare an owner's equity statement for the 2 months ended December 31, 2021. (List items that increase owner's equity first.)

COOKIE CREATIONS Owner's Equity Statement choose the accounting period For the Two Months Ended December 31, 2021December 31, 2021For the Year Ended December 31, 2021
select an opening name DrawingsExpensesNet Income / (Loss)Owner's Capital, November 1Owner's Capital, December 31RevenuesTotal ExpensesTotal Revenues	$enter a dollar amount
select between addition and deduction AddLess: select an item DrawingsExpensesNet Income / (Loss)Owner's Capital, November 1Owner's Capital, December 31RevenuesTotal ExpensesTotal Revenues	enter a dollar amount
	enter a subtotal of the two previous amounts
select between addition and deduction AddLess: select an item DrawingsExpensesNet Income / (Loss)Owner's Capital, November 1Owner's Capital, December 31RevenuesTotal ExpensesTotal Revenues	enter a dollar amount
select a closing name DrawingsExpensesNet Income / (Loss)Owner's Capital, November 1Owner's Capital, December 31RevenuesTotal ExpensesTotal Revenues	$enter a total amount

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(a3)

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Your answer is partially correct.

Prepare a classified balance sheet at December 31, 2021. The note payable has a stated interest rate of 6%, and the principal and interest are due on November 16, 2023. (List Current Assets in order of liquidity.)

COOKIE CREATIONS Balance Sheet choose the accounting period For the Two Months Ended December 31, 2021December 31, 2021For the Year Ended December 31, 2021
Assets
select an opening name for subsection one Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesOwner's EquityProperty, Plant and EquipmentTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Owner's EquityTotal Property, Plant and Equipment
enter a balance sheet item			$enter a dollar amount
enter a balance sheet item			enter a dollar amount
enter a balance sheet item			enter a dollar amount
enter a balance sheet item			enter a dollar amount
select a closing name for subsection one Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesOwner's EquityProperty, Plant and EquipmentTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Owner's EquityTotal Property, Plant and Equipment					$enter a total amount for subsection one
select an opening name for subsection two Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesOwner's EquityProperty, Plant and EquipmentTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Owner's EquityTotal Property, Plant and Equipment
enter a balance sheet item			enter a dollar amount
select between addition and deduction LessAdd: enter a balance sheet item			enter a dollar amount		enter a subtotal of the two previous amounts
select a closing section name for this part of the balance sheet Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesOwner's EquityProperty, Plant and EquipmentTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Owner's EquityTotal Property, Plant and Equipment					$enter a total amount for this part of the balance sheet
Liabilities and Owner's Equity
select an opening name for subsection one Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesOwner's EquityProperty, Plant and EquipmentTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Owner's EquityTotal Property, Plant and Equipment
enter a balance sheet item			$enter a dollar amount
enter a balance sheet item			enter a dollar amount
enter a balance sheet item			enter a dollar amount
select a closing name for subsection one Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesOwner's EquityProperty, Plant and EquipmentTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Owner's EquityTotal Property, Plant and Equipment					$enter a total amount for subsection one of the second part of the balance sheet
select an opening name for subsection two Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesOwner's EquityProperty, Plant and EquipmentTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Owner's EquityTotal Property, Plant and Equipment
enter a balance sheet item			enter a dollar amount
enter a balance sheet item			enter a dollar amount
select a closing name for subsection two Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesOwner's EquityProperty, Plant and EquipmentTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Owner's EquityTotal Property, Plant and Equipment					enter a total amount for subsection two of the second part of the balance sheet
select a closing name for section one Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesOwner's EquityProperty, Plant and EquipmentTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Owner's EquityTotal Property, Plant and Equipment					enter a total amount for section one of the second part of the balance sheet
select an opening name for section two Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesOwner's EquityProperty, Plant and EquipmentTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Owner's EquityTotal Property, Plant and Equipment
enter a balance sheet item					enter a dollar amount
select a closing name for this part of the balance sheet Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesOwner's EquityProperty, Plant and EquipmentTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner's EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Owner's EquityTotal Property, Plant and Equipment					$enter a total amount for this part of the balance sheet

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(b)

Natalie has decided that her year-end will be December 31, 2021. Prepare closing entries as of December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31	enter an account title to close revenue account on December 31	enter a debit amount	enter a credit amount
	enter an account title to close revenue account on December 31	enter a debit amount	enter a credit amount
	(To close revenue account)
Dec. 31	enter an account title to close expense accounts on December 31	enter a debit amount	enter a credit amount
	enter an account title to close expense accounts on December 31	enter a debit amount	enter a credit amount
	enter an account title to close expense accounts on December 31	enter a debit amount	enter a credit amount
	enter an account title to close expense accounts on December 31	enter a debit amount	enter a credit amount
	enter an account title to close expense accounts on December 31	enter a debit amount	enter a credit amount
	enter an account title to close expense accounts on December 31	enter a debit amount	enter a credit amount
	enter an account title to close expense accounts on December 31	enter a debit amount	enter a credit amount
	enter an account title to close expense accounts on December 31	enter a debit amount	enter a credit amount
	(To close expense accounts)
Dec. 31	enter an account title to close net income or loss on December 31	enter a debit amount	enter a credit amount
	enter an account title to close net income or loss on December 31	enter a debit amount	enter a credit amount
	(To close net income / (loss))
Dec. 31	enter an account title to close drawings on December 31	enter a debit amount	enter a credit amount
	enter an account title to close drawings on December 31	enter a debit amount	enter a credit amount
	(To close drawings)

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(c)

Prepare a post-closing trial balance.

COOKIE CREATIONS Post-Closing Trial Balance choose the accounting period December 31, 2021For the Year Ended December 31, 2021For the Two Months Ended December 31, 2021
	Debit		Credit
enter an account title	$enter a debit balance		$enter a credit balance
enter an account title	enter a debit balance		enter a credit balance
enter an account title	enter a debit balance		enter a credit balance
enter an account title	enter a debit balance		enter a credit balance
enter an account title	enter a debit balance		enter a credit balance
enter an account title	enter a debit balance		enter a credit balance
enter an account title	enter a debit balance		enter a credit balance
enter an account title	enter a debit balance		enter a credit balance
enter an account title	enter a debit balance		enter a credit balance
enter an account title	enter a debit balance		enter a credit balance
enter an account title	enter a debit balance		enter a credit balance
enter an account title	enter a debit balance		enter a credit balance
Totals	$enter a total for the debit column		$enter a total for the credit column