Question
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
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, 2019 | ||||
| Debit | Credit | |||
| Cash | $870 | |||
| Accounts Receivable | 650 | |||
| Supplies | 260 | |||
| Prepaid Insurance | 900 | |||
| Equipment | 900 | |||
| Accumulated DepreciationEquipment | $30 | |||
| Accounts Payable | 55 | |||
| Salaries and Wages Payable | 41 | |||
| Interest Payable | 10 | |||
| Unearned Service Revenue | 220 | |||
| Notes Payable | 1,500 | |||
| Owners Capital | 590 | |||
| Owners Drawings | 370 | |||
| Service Revenue | 3,343 | |||
| Salaries and Wages Expense | 744 | |||
| Utilities Expense | 95 | |||
| Advertising Expense | 120 | |||
| Supplies Expense | 760 | |||
| Depreciation Expense | 30 | |||
| Insurance Expense | 80 | |||
| Interest Expense | 10 |
| ||
| $5,789 | $5,789 | |||
Using the information in the adjusted trial balance, do the following.
(a1)
Prepare an income statement for the 2 months ended December 31, 2019. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
| COOKIE CREATIONS Income Statement For the Year Ended December 31, 2019For the Two Months Ended December 31, 2019December 31, 2019 | ||
| DrawingsExpensesNet Income / (Loss)Owners Capital, November 1Owners Capital, December 31RevenuesTotal ExpensesTotal Revenues | ||
| $ | ||
| DrawingsExpensesNet Income / (Loss)Owners Capital, November 1Owners Capital, December 31RevenuesTotal ExpensesTotal Revenues | ||
| $ | ||
| DrawingsExpensesNet Income / (Loss)Owners Capital, November 1Owners Capital, December 31RevenuesTotal ExpensesTotal Revenues | ||
| DrawingsExpensesNet Income / (Loss)Owners Capital, November 1Owners Capital, December 31RevenuesTotal ExpensesTotal Revenues | $ | |
(a2)
Prepare an owners equity statement for the 2 months ended December 31, 2019. (List items that increase owner's equity first.)
| COOKIE CREATIONS Owners Equity Statement December 31, 2019For the Year Ended December 31, 2019For the Two Months Ended December 31, 2019 | |
| DrawingsExpensesNet Income / (Loss)Owners Capital, November 1Owners Capital, December 31RevenuesTotal ExpensesTotal Revenues | $ |
| AddLess: DrawingsExpensesNet Income / (Loss)Owners Capital, November 1Owners Capital, December 31RevenuesTotal ExpensesTotal Revenues | |
| AddLess: DrawingsExpensesNet Income / (Loss)Owners Capital, November 1Owners Capital, December 31RevenuesTotal ExpensesTotal Revenues | |
| DrawingsExpensesNet Income / (Loss)Owners Capital, November 1Owners Capital, December 31RevenuesTotal ExpensesTotal Revenues | $ |
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
