PART FOUR Cookie Creations is goaring up for the winter holiday season. During the month of December 201, the following transactions occur Dec. 1 Natalie hires an assistant at an hourly wage of $8 to help with cookie making and some administrative duties. 5 Natalie teaches the class that was booked on November 25. The balance outstanding is 8 Cookie Creations receives a check for the amount due from the neighborhood school for the class given on November 30 9 Cookie Creations receives $750 in advance from the local school board for five classers that the company will give during December and J 15 Pays the cel phone invoice outstanding at November 30 16 Issues a check to Natalie's brother for the amount owed for the design of the website 19 Receives a deposit of $60 on a cookle class scheduled for early January 23 Addional revenue during the month for cookie-making classes amounts to $4,000 (Natalie has not had time to account for each class individualily,) $3,000 in cash has beern colected and $1,000is ill tstanding. (This is in addition to the December8 23 Additional baking supplies purchased during the month for sugar, flour, and chooolate 23 Issues a check to Natalie's assistant for $800. Her assistant worked approximately 100 28 Pays a dividend of $500 to the common sharehoider (Natalie). December 9 transactions.) chips amount to $1,250 cash. hours from the time in which she was hired until December 23 The trial balance from November is shown below COOKIE CREATIONS INC Triai Balance November 30, 2017 Cash S 340 300 220 1,200 1,200 600 Accounts Receivable Prepaid Insurance Accounts Payable . Unearned Service Revenue Notes Payable Common Stock.. Service Revenue Uslities Expense $ 650 60 2,000 800 400 RE SAVE kindle As of December 31, Cookie Creations' year-end, the following adjusting entry data are provided. 1. A count reveals that $45 of brochures and posters (supplies) were used. 2. Depreciation is recorded on the baking equipment purchased in November. The baking equipment has a useful life of 5 years. Assume that 2 months' worth of depreciation is 3. Amortization (which is similar to depreciation) is recorded on the website. (Credit the Website 4. Interest on the note payable is accrued. (Assume that 1.5 months of interest accrued during 5. One month's worth of insurance has expired account directly for the amount of the amortization.) The website is amortized over a useful ide of 2 years and was available for use on December 1. November and December.) Round to nearest dllar 6. Natalie is unexpectedly telephoned on December 28 to give a cookie class at the neighborhood community center on December 31. In early January Cookie Creations sends an invoice for $450 to the community center 7. A count reveals that $1,025 of baking supplies were used 8. A cell phone invoice is received for $75. The invoice is for services provided during the month of December and is due on January 15. 9. Because the cookie-making class occurred unexpectedly on December 31 and is for such a large group of children, Natalie's assistant helps out Her assistant worked 7 hours at a rate of $8 per hou 10. An analysis of the uneamed revenue account reveals that two of the five classes paid for by the local school board on December 9 still have not been $60 d taught by the end of December. The Instructions Using the information gathered from above and from the November trial balance, do the following: (a) Journalize the above transactions. (b) Post the December transactions. (c) Prepare a trial balance at December 31, 2017 (d) Prepare and post adjusting journal entries for the month of December. (e) Prepare an adjusted trial balance as of December 31, 2017 (f) Prepare an income statement and a retained earnings statement for the 2- month period ending December 31, 2017, and a classified balance sheet as of (9) Prepare and post closing entries as of December 31, 2017 (h) Prepare a post-closing trial balance. - (c) Totals (e) Totals (1) Net income (h) Totals $8,160 $8,804 $3,211 $6,065 RE SAVE