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, 2016
	Debit	Credit
Cash	$1,180
Accounts Receivable	875
Supplies	350
Prepaid Insurance	1,210
Equipment	1,200
Accumulated DepreciationEquipment		$40
Accounts Payable		75
Salaries and Wages Payable		56
Interest Payable		15
Unearned Service Revenue		300
Notes Payable		2,000
Owner's Capital		800
Owner's Drawings	500
Service Revenue		4,515
Salaries and Wages Expense	1,006
Utilities Expense	125
Advertising Expense	165
Supplies Expense	1,025
Depreciation Expense	40
Insurance Expense	110
Interest Expense	15
	$7,801	$7,801

Instructions

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

(a)

Prepare an income statement and an owner's equity statement for the 2 months ended December 31, 2016, and a classified balance sheet at December 31, 2016. The note payable has a stated interest rate of 6%, and the principal and interest are due on November 16, 2018.

(b)

Natalie has decided that her year-end will be December 31, 2016. Prepare and post closing entries as of December 31, 2016.

(c)

Prepare a post-closing trial balance.

You may use either Word or Excel to complete parts a and c. Part b must be completed on ledger paper in pen and it must be legible with no scratch throughs. Make sure all group member names are listed. This is due at the beginning of class on the due date.