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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