Cookie Creations 5 b-f (Part Level Submission) Because Natalie has had such a successful first few months, she is considering other opportunities to develop her business. One opportunity is the sale of fine European mixers. The owner of Kzinski Supply Co. has approached Natalie to become the exclusive distributor of these fine mixers in her state. The current cost of a mixer is approximately $575, and Natalie would sell each one for $1,150. Natalie comes to you for advice on how to account for these mixers. Each appliance has a serial number and can be easily identified. The trial balance for Continuing Cookie Chronicle as on December 31, 2011 is as follows: Continuing Cookie Chronice Trial Balance December 31, 2011 Account Debit Credit Cash $1,180 Accounts Receivable 875 Supplies 350 Prepaid Insurance 1,210 Equipment 1,200 Accumulated Depreciation - Equipment $40 Accounts Payable 75 Salaries and Wages Payable 56 Unearned Service Revenue 300 Interest Payable 15 Notes Payable 2,000 Owner's Capital 2,329 $4,815 $4,815 8 12 14 In the end, Natalie decides to use the perpetual inventory system. The following transactions happen during the month of January Jan. 4 Bought five deluxe mixers on account from Kzinski Supply Co. for $2,875, FOB shipping point, terms n/30. Paid $100 freight on the January 4 purchase. 7 Returned one of the mixers to Kzinski because it was damaged during shipping, Kzinski issues Continuing Cookie Chronicle credit for the cost of mixer plus $20 for the cost of freight that was paid on January 6 for one mixer Collected $375 of the accounts receivable from December 2015. Three deluxe mixers are sold on account for $3,450, FOB destination, terms n/30. (Cost of goods sold is $595 per mixer.) Paid the $75 of delivery charges for the three mixers that were sold on January 12. Bought four deluxe mixers on account from Kzinski Supply Co. for $2,300, FOB shipping point, terms n/30. Natalie is concerned that there is not enough cash available to pay for all of the mixers purchased. She invests an additional $1,000 cash in Continuing Cookie Chronicle. Paid $80 freight on the January 14 purchase. 20 Sold two deluxe mixers for $2,300 cash. (Cost of goods sold is $595 per mixer.) 28 Natalie issued a check to her assistant for all the help the assistant has given her during the month. Her assistant worked 20 hours in January and is also paid the $56 owed at December 31, 2016. (Natalie's assistant earns $8 an hour.) 28 Collected the amounts due from customers for the January 12 transaction. 30 Paid a $145 utility bill ($75 for the December 2016 accounts payable and $70 for the month of January). Paid Kzinski all amounts due. Natalie withdrew $750 for personal use. 14 17 18 31 31 (62) Post the January 2017 transactions. (Post entries in the order of journal entries presented in the previous part. Il balance after calculations is o then please enter 0. Enter other answers in Debit and Credit columns in relevant fields only, leave other fields blank.) Cash Date Explanation Ref. Debit Credit Balance Balance J1 31 > 31 > 31 31 31 31 31 11 J1 J1 JI Accounts Receivable Date Explanation Ref. Debit Credit Balance Balance 01 31 J1 01 Ji 11 J1 31 31 31 Salaries and Wages Payable Date Explanation Ref. Debit Credit Balance Balance J1 Unearned Service Revenue Date Explanation Ref. Debit Credit Balance Balance